Which of the Following Can Be Concluded About the Long-Run

question 136

Multiple Choice

Which of the following can be concluded about the long-run performance of the U.S.economy?

• A)It has been able to create employment opportunities but only at the cost of high inflation.
• B)It has failed to generate sufficient aggregate demand in the economy.
• C)It has been one of the most productive economies in the world in terms of growth in real GDP.
• D)It has focused fiscal policies mostly at improving aggregate supply.
• E)It has suffered from huge fiscal deficits that dampened economic growth.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, highlighting the trade-offs involved.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Expected Profit Rate

The forecasted return on investment, predicting the percentage of profit relative to costs.

Investment

The allocation of resources or capital to create profit in the future.