The Dimensions of Two Quantities MUST Be Identical If You

question 4

Multiple Choice

The dimensions of two quantities MUST be identical if you are either __________ or __________ the quantities.

• A)adding; multiplying
• B)subtracting; dividing
• C)multiplying; dividing
• D)adding; subtracting
• E)All of these are correct.

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Definitions:

Output Levels

Output levels refer to the quantity of goods and services produced by an economy or firm during a specific period.

Recessionary Gap

A situation in which the real GDP of an economy is lower than its potential GDP at the full employment level, indicating underutilized resources.

Actual Output

Actual output refers to the real GDP or the total value of all goods and services produced in an economy at a given time, contrasting with potential output.

Expected Price Level

The anticipation or forecast of future prices across an economy, affecting consumer and business decisions.