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:
Verified
Q244: Refer to the information provided in Figure
Q245: When the economy is in a slump,
Q246: Investment is a very stable component of
Q247: Output per worker hour is known as
A)
Q248: Productivity tends to
A) rise during contractions.
B) rise
Q250: Refer to the information provided in Figure
Q251: Refer to the information provided in Figure
Q252: During economic downswings,
A) output falls faster than
Q253: During economic expansions,
A) employment rises by a
Q254: When output increases by 1%, the number
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