A Trough in the Business Cycle Usually Means That the Economy

question 221

True/False

A trough in the business cycle usually means that the economy is operating at capacity.

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Definitions:

Noncompeting Groups

Collections of workers who do not compete with each other for employment because the skill and training of the workers in one group are substantially different from those of the workers in other groups.

Geographic Immobility

Refers to the inability or reluctance of labor force or resources to move from one location to another, often due to economic, social, or personal factors.

Compensating Differences

Wage differentials that are paid to workers to offset the undesirable aspects of a job or to compensate for risks associated with the job.

Divergence

The act or process of developing in different directions or deviating from a standard.