Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A)A recession occurs when the expenditure line shifts down the 45-degree line.
• B)A recession occurs whenever potential GDP is less than real GDP at the point of spending balance.
• C)A recession occurs whenever income and expenditures are not equal.
• D)A recession occurs when the expenditure line crosses the 45-degree line at a level of income less than potential GDP.
• E)The expenditure line cannot be used to identify recessions or expansions.

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Definitions:

Lumbar Vertebrae

The five vertebrae located in the lower back part of the spinal column, identified as L1 through L5, supporting much of the body's weight and allowing for movement.

Spinal Column

The vertebral column or backbone, consisting of a series of vertebrae that protect the spinal cord and provide structural support to the body.

Sacrum

Five fused vertebrae that lie between the coccyx and the lumbar vertebrae of the spinal column.

Pelvic Girdle

A bony structure located in the lower part of the trunk, connecting the spine to the legs and supporting the visceral organs of the pelvis.