Services Are Defined as

question 133

Multiple Choice

Services are defined as

• A)philanthropic activities performed without expectations of monetary remuneration.
• B)the activities provided to complement a tangible good,such as technical support for a computer.
• C)the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
• D)any activity required for the production of a good that cannot be completed "in-house" and must be outsourced to another firm.
• E)the human (nonmechanical)component that is part of the manufacturing process.

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Definitions:

Potential Output

The optimum level of real gross domestic product achievable over a prolonged period without triggering higher inflation.

Expected Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as anticipated by consumers and businesses.

Short-run Phillips Curve

A curve illustrating the short-term trade-off between inflation and unemployment, suggesting that lower unemployment in an economy can lead to higher inflation rates.

Aggregate Demand Curve

A graphical representation that shows the relationship between the overall price level and the total demand for goods and services in an economy.