Which of the Following Statements Is Accurate About Most Economies

question 48

Multiple Choice

Which of the following statements is accurate about most economies?

• A) Economies experience a positive growth trend over the short run but experience significant variability in the long run.
• B) Economies experience a positive growth trend over the long run but experience significant variability in the short run.
• C) Economies experience positive and stable growth over both the long run and short run.
• D) Economies experience little long-run growth in output but can experience significant growth in the short run.

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Definitions:

Business Cycles

Fluctuations in economic activity characterized by periods of expansion (growth) and contraction (recession) in an economy.

Upward Trend

A pattern or movement in data points that shows an increase over a period of time, often used in economic, financial, and market analyses.

Classical Analysis

An economic theory that focuses on free markets, growth, and the economy's self-regulating nature, emphasizing the importance of limited government intervention.

Growth

The increase in the economic output of a country or region, typically measured by the rise in the Gross Domestic Product (GDP), over time.