Suppose Real GDP Is $14 Trillion and Potential Real GDP

question 306

Multiple Choice

Suppose real GDP is $14 trillion and potential real GDP is $14.4 trillion.An increase in government purchases of $400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level) .

• A)equal
• B)be less than
• C)be more than
• D)There is insufficient information given here to draw a conclusion.

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Definitions:

Process Cost Savings

Process cost savings refer to reducing expenses involved in the operations of a business or production process, often achieved through efficiency improvements or negotiation.

Investment Recovery

The process of recouping the value of assets no longer needed by an organization, either through sale, recycling, or reuse.

Green Purchasing

The procurement of products and services that cause minimal environmental impact, supporting sustainability goals.

Corporate Social Responsibility (CSR)

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.