In normal times, when the economy is in neither a recession nor a boom, manufacturing capacity utilization is at 100 percent.

Question

Quizplus · Accepted Answer

In normal times, when the economy is neither in a recession nor a boom, manufacturing capacity utilization is typically less than 100 percent. This is because companies typically keep some excess capacity in order to handle unexpected increases in demand or temporary shutdowns for maintenance, repairs, or upgrades.

In Normal Times, When the Economy Is in Neither a Recession