-Using the Above Figure,if Full Employment Occurs at $15 Trillion

question 96

Multiple Choice

-Using the above figure,if full employment occurs at $15 trillion and the economy is actually producing $15 trillion,then there is a

• A) cyclical deficit.
• B) cyclical surplus.
• C) structural deficit.
• D) structural surplus.

---

Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance expenses.

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life.

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and generate profit.