During Recessions, the Change in Real GDP Is

question 84

Multiple Choice

During recessions, the change in real GDP is:

• A) always positive.
• B) always negative.
• C) usually positive, but can be negative.
• D) usually negative, but can be positive.

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Definitions:

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, like labor, in the production of goods or services.

Marginal Product

The additional output that is produced by adding one more unit of a particular input while keeping other inputs constant.

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence market price.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.