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, but the long-run potential of the economy doesn't change as output per worker falls during a recession.
C. The long-run potential of the economy increases as output per worker rises during an expansion.
D. Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.
Answer: D
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Marginal revenue for a perfectly competitive firm equals: a. the addition to total cost from producing one more unit of output. b. average revenue at all levels of output
c. marginal cost at all levels of output. d. average total cost at all levels of output.
An increase in market supply will increase price
Indicate whether the statement is true or false
?If a firm is producing at an output level where the total revenue curve intersects the total cost curve, which of the following is true of the firm?
a. ?Its profit is zero. b. ?Its cost is maximized. c. ?Its cost is minimized. d. ?Its revenue is maximized. e. ?Its profit is maximized.
Which of the following items would be considered scarce?
A) water B) diamonds C) potato chips D) All of the above are scarce.