Which Statement Is True

question 71

Multiple Choice

Which statement is true?

• A)The recessions of 1973-1975 and 1981-1982 were both mild.
• B)The recessions of 1973-1975 and 1981-1982 were both severe.
• C)The recession of 1973-1975 was mild;the recession of 1981-1982 was severe.
• D)The recession of 1973-1975 was severe;the recession of 1981-1982 was milD.

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Definitions:

Government Failure

The occurrence when government actions lead to outcomes that are inefficient or not beneficial to society, contrary to its intended outcomes.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a welfare loss.

Government Failure

A situation where government intervention in the economy creates inefficiency and leads to a misallocation of resources.

Federal Money

Funds provided by the federal government, often to support state or local projects, policies, or to provide social services.