According to the Structural Stagnation Theory

question 79

Multiple Choice

According to the structural stagnation theory,

• A)U.S.economic growth will return to the world average growth rate, but by that time the U.S.share of world output will have declined.
• B)U.S.economic growth will return to the world average growth rate and its current share of world output.
• C)U.S.economic growth will never return to the world average growth rate because foreign economies have so far to catch up.
• D)After a period of slower growth U.S.economic growth will exceed world growth.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.

Percentage Change

A mathematical calculation that depicts the degree of change over time, usually expressed as a percentage.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.