Which of the Following Is an Accurate Statement Concerning the Macroeconomy

question 8

Multiple Choice

Which of the following is an accurate statement concerning the macroeconomy of the United States?

• A)The goals of full employment,price stability and vigorous economic growth are frequently met.
• B)The economy continues to experience the ups and downs of the business cycle.
• C)The ups and downs of the business cycle have been more severe since World War II.

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Definitions:

Input Prices

refer to the costs associated with the raw materials and components required for the production of goods and services.

Variable Inputs

Resources used in production that can be adjusted in the short term to change the level of output.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust to market conditions.

Capital

Assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents and copyrights.