Which of the Following Statements Is True of the U

question 27

Multiple Choice

Which of the following statements is true of the U.S.economy?

• A)In the second half of the 1960s, the output gap was mostly negative while in the first half of the 1990s, the output gap was mostly positive.
• B)In the second half of the 1960s, the output gap was mostly positive while in the first half of the 1990s, the output gap was mostly negative.
• C)In the second half of the 1960s and the first half of the 1990s, the output gap was mostly negative.
• D)In the second half of the 1960s and the first half of the 1990s, the output gap was mostly positive.

---

Definitions:

Differential Cost

The difference in cost between two alternative decisions or scenarios, impacting the selection of one option over another.

Differential Cost

is the change in a company's cost of producing goods or services under two different action alternatives, essentially the cost difference between two choices.

Unused Capacity

The available but not utilized production ability of a company which could potentially generate revenue if employed.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product, calculated by dividing the total cost by the number of units.