What Turns a Business Cycle into a Structural Stagnation

question 28

Multiple Choice

What turns a business cycle into a structural stagnation?

• A)A trough that is lower than the peak.
• B)Multiple business cycles in a short period of time.
• C)A slow upturn that keeps the economy below trend.
• D)An upturn that exceeds potential.

---

Definitions:

Least Cost

The principle of choosing the option that provides the necessary level of benefit or utility at the minimum possible cost.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Constant-cost Industry

An industry in which the costs of production do not change as the industry's total output changes.

Competitive Market

A market where there are many buyers and sellers so that no single buyer or seller can influence the price or market conditions.