Which of the following statements is accurate about most economies?
A) Economies experience a positive growth trend over the short run but experience signiﬁcant variability in the long run.
B) Economies experience a positive growth trend over the long run but experience signiﬁcant variability in the short run.
C) Economies experience positive and stable growth over both the long run and short run.
D) Economies experience little long-run growth in output but can experience signiﬁcant growth in the short run.

Question

Quizplus · Accepted Answer

Most economies experience a positive growth trend over the long run, but experience significant variability in the short run due to various factors such as changes in government policies, natural disasters, market fluctuations, and global economic conditions. This is evident in the business cycle, which shows the short-term fluctuations in economic activity around its long-term growth trend.

Which of the Following Statements Is Accurate About Most Economies