Which of the Following Products Is Most Likely to Be

question 82

Multiple Choice

Which of the following products is most likely to be distributed through direct channels?

• A)Smartphones
• B)Staplers
• C)Hair dryers
• D)Computer systems

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Definitions:

Potential Output

The highest level of economic output that can be sustained over the long term without increasing inflation.

MPC

Marginal Propensity to Consume, which indicates the fraction of additional income that a household is likely to spend on consumption.

Contractionary Fiscal Policy

Economic measures employed by a government to reduce its expenditures or increase taxes with the aim of slowing down an overheated economy.

Potential Output

The highest level of real gross domestic product (GDP) that can be sustained over the long term without increasing inflation, reflecting the maximum productive capacity of an economy.