Which of the following is true?

Question

Quizplus · Accepted Answer

During a boom, the economy is operating above its long-run potential output, which means that output is higher than the maximum sustainable output level over the long term. This also implies that businesses are hiring more workers, reducing the level of unemployment below the natural rate of unemployment. Therefore, option A and D are incorrect. Option C is also incorrect because during a boom, the rate of unemployment is usually low, and the demand for labor is high.

Which of the Following Is True