An Expansion Occurs When ________, When ________, or When Both

question 29

Multiple Choice

An expansion occurs when ________, when ________, or when both of these occur.

• A)potential output grows rapidly; actual output rises above potential output.
• B)potential output grows slowly; actual output rises above potential output
• C)potential output grows rapidly; actual output equals potential output
• D)potential output grows slowly; actual output equals potential output

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Definitions:

Expenses

Costs necessary for maintaining the daily operations of a business, contributing to the revenue generation indirectly.

Revenue

The total income earned by a company for selling its goods, services, or other rights to use assets.

Owner Investment

Capital or assets contributed by the owner(s) of a company into the business, increasing the company's equity.

Revenue

The sum of money a business earns from selling products or offering services over a specified time frame.