Which of the Following Is True

question 25

Multiple Choice

Which of the following is true?

• A)Employment and unemployment are both coincident with the business cycle.
• B)Employment and unemployment are both procyclical.
• C)Employment is procyclical and unemployment is coincident with the business cycle.
• D)Employment is procyclical and unemployment is countercyclical.

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Definitions:

LRAC Curve

Stands for Long-Run Average Cost curve, which shows the lowest average cost of producing different levels of output when all inputs, including capital, are variable.

Entry

The act of beginning or entering into a particular sphere or market, often used in the context of firms entering an industry.

MC of Production

The additional cost incurred by producing one more unit of a good or service, often denoted as marginal cost.

Long-Run Industry

An economic concept where all inputs and operations are adjustable, allowing for new firms to enter or exit the market, affecting supply and price levels.