Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A) The long-run potential of the economy declines as output per worker falls during a recession.
• B) The long-run potential of the economy increases as output per worker rises during an expansion.
• C) The long-run potential of the economy increases as output per worker rises during an expansion, but the long-run potential of the economy doesn't change as output per worker falls during a recession.
• D) Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.

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Definitions:

Consciousness

A state of awareness of one's self, environment, and thoughts.

Reasoning by Analogy

A form of reasoning in which an individual concludes that something is true for one case because it is true for another similar case.

Tumor Problem

A medical challenge or condition involving abnormal growths of tissue, which can be either benign or malignant.

General

Broadly inclusive, not limited to a specific category or group, or relating to the main or overall characteristics.