Changes in the Factors That Underlie Potential GDP Growth

question 3

Multiple Choice

Changes in the factors that underlie potential GDP growth

• A)are the major sources of economic fluctuations.
• B)evolve too quickly to be able to explain economic fluctuation.
• C)are as important as changes in aggregate demand in explaining economic fluctuations.
• D)evolve too slowly to be able to explain economic fluctuations.
• E)were, until the 1920s, a valid explanation of economic fluctuations.

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Definitions:

Organic

Relating to or derived from living matter; in business or organization contexts, it often describes processes or structures that are flexible and naturally developing.

Mechanistic

Referring to a view or system that regards processes or organizations as being similar to a machine, with each part having a specific role that contributes to the overall operation.

Span of Control

Refers to the number of subordinates that a manager or leader can effectively oversee or control within an organization.

Self-Directed Work Teams

Groups of employees who are given autonomy and responsibility to manage themselves and their work, including planning, execution, and monitoring, often leading to increased engagement and productivity.