Suppose the Economy Is at Its Potential Output Level

question 73

Multiple Choice

Suppose the economy is at its potential output level.Which of the following best describes the price level?  

• A) The actual price level is less than the expected price level. 
• B) The actual price level is greater than the expected price level. 
• C) The actual price level is the same as the expected price level. 
• D) The actual price level is NOT the same as its expected price level.

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Definitions:

Franchising

A business model that allows individuals or entities to operate a store or restaurant by licensing a brand and business system from a franchisor.

Disadvantages

Negative or less favorable aspects of a situation, plan, or decision.

Franchisee

A business owner who operates a single franchise outlet, having bought the rights from the franchisor to use the business model and branding.

Franchising

A business model where a business owner (franchisor) licenses trademarks and methods to an independent entrepreneur (franchisee) to conduct business under the franchisor's name.