Suppose that output in an economy is 50 units and the number of hours worked in the economy is 25. If the economy enters a recession, which of the following combinations of output and hours worked would best reflect the recession?

Question

Quizplus · Accepted Answer

A recession typically results in reduced output while not necessarily reducing hours worked by the same proportion, reflecting decreased productivity or underutilization of labor. Option D shows a decrease in output with a less proportional decrease in hours worked, which aligns with typical recessionary effects.

Suppose That Output in an Economy Is 50 Units and the Number