Which of the following statements is TRUE?
A) The long-run potential of the economy declines as output per worker falls during a recession.
B) The long-run potential of the economy increases as output per worker rises during an expansion.
C) The long-run potential of the economy increases as output per worker rises during an expansion,but the long-run potential of the economy doesn't change as output per worker falls during a recession.
D) Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.
Correct Answer:
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