Output Fluctuations Are Defined As

question 59

Multiple Choice

Output fluctuations are defined as:

• A) the amount of output where inflation is about 2 percent.
• B) what an economy produces when it is at capacity.
• C) the percentage difference between current output and potential output.
• D) the amount of total output if all inputs were utilized at their long-run sustainable levels.
• E) the amount of output where unemployment is zero.

---

Definitions:

Abandonment Option

In project management and finance, the option to halt a project or investment if it becomes non-viable or unprofitable.

Improve NPV

Strategies or steps taken to increase the Net Present Value of an investment, thereby enhancing its profitability.

Lower Risk

Investments or actions that are considered to have a lower likelihood of resulting in a loss.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds, essentially how much it costs a company to use funds for projects or business activities.