Certain Industries of the U

question 97

Multiple Choice

Certain industries of the U.S. economy, such as farming and heavy equipment manufacturing, have experienced a significant decline in employment. Which of the following best explains this job loss?

• A) The cause is a decline in the productivity of labor in these industries.
• B) Workers lost these jobs because technological advances increased productivity.
• C) The U.S. economy cannot compete in these industries any longer.
• D) Government regulations have eliminated profit opportunities in these industries.

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Definitions:

Recession 1981-1982

The recession of 1981-1982 was a severe global economic downturn characterized by high inflation, interest rates, and unemployment, particularly impacting the United States.

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount.

Multiplier Effect

The proportional amount of increase in final income that results from an injection of spending.

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, as mandated by central banking authorities to ensure bank liquidity.