Suppose That Output in an Economy Is 1,000 Units and the Number

question 129

Multiple Choice

Suppose that output in an economy is 1,000 units and the number of hours worked in the economy is 40. If the economy enters a recession, which of the following combinations of output and hours worked would best reflect the recession?

• A) 1,000 units of output and 40 hours worked
• B) 500 units of output and 20 hours worked
• C) 800 units of output and 30 hours worked
• D) 600 units of output and 25 hours worked

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Definitions:

Supply (S)

The total amount of a specific good or service that is available to consumers.

Cost Of Producing

The total expenditure incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.