If the Quantity of Goods and Services Produced in the Economy

question 53

Multiple Choice

If the quantity of goods and services produced in the economy decreases,

• A)it may be possible for real GDP to increase.
• B)real GDP would certainly increase.
• C)it may be possible for nominal GDP to increase.
• D)nominal GDP would certainly increase.

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Definitions:

Chase Strategy

A production planning method that adjusts workforce levels and production rates to match demand, minimizing inventory levels and workforce costs.

Level Strategy

An inventory management strategy where production rates or workforce levels are kept constant despite demand fluctuations.

Formal Planning Model

A structured approach to planning that involves systematic procedures and methodologies to achieve specified objectives.

Pure Level Strategy

A production strategy where the output rates are kept constant and inventory is used to absorb fluctuations in demand.