A recession can be represented by a point
A)Inside the production possibilities curve.
B)Outside the production possibilities curve.
C)On the production possibilities curve.
D)At either end of the production possibilities curve.

Question

Quizplus · Accepted Answer

A recession represents a decrease in the overall production capacity of an economy, which means it falls below its potential. Thus, a recessionary point will lie inside the production possibilities curve, indicating that the economy is producing less than it is capable of.

A Recession Can Be Represented by a Point