inflation rates tend to accelerate
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
Actual output is the "real" GDP ( gross domestic product). potential output is the targeted output set by the government. the difference between the actual and potential output is UNDEREMPLOYMENT!
Potential output is the capacity to produce should all factors be employed in an economy. For example, it is the output should there be no unemployment, no spare labour and no spare capital. It is unlikely that actual output will be the same as potential ouput since there is always unemployment.
Answers for If A Firm Is Producing A Level Of Output Where MR Exceeds MC, Would It Improve Profits By Increasing Output, Decreasing Output Or Keeping Output Unchanged?
increase output
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
Actual output is the "real" GDP ( gross domestic product). potential output is the targeted output set by the government. the difference between the actual and potential output is UNDEREMPLOYMENT!
expansionary output gap has occured.
Weight gain.
A contractionary gap occurs when an economy's actual output is less than its potential output. This leads to high unemployment and underutilization of resources. Policymakers may implement contractionary monetary or fiscal policies to close this gap and bring the economy back to full employment.
actual usage of materials exceeds the standard material allowed for output
An expansionary gap is a negative output gap, which occurs when actual output is higher than potential output.
Potential output is the capacity to produce should all factors be employed in an economy. For example, it is the output should there be no unemployment, no spare labour and no spare capital. It is unlikely that actual output will be the same as potential ouput since there is always unemployment.
It is also known as operating rate. Formula is actual input minus potential output over potential output, multiplied by 100 utilization rate.
Diuresis is the medical term meaning liquid output exceeds intake.
If urine output exceeds input you will lose total body water. If you are retaining fluid, i.e. have too much, this is normal and good. At some point, if it does not stop , it will lead to dehydration.
Answers for If A Firm Is Producing A Level Of Output Where MR Exceeds MC, Would It Improve Profits By Increasing Output, Decreasing Output Or Keeping Output Unchanged?