According to the Secular Stagnation Explanation, the Two "Culprits" for Why

question 19

Multiple Choice

According to the secular stagnation explanation, the two "culprits" for why Western economies have not had strong recoveries in the aftermath of the financial crisis are:

• A) low TFP and high labor costs.
• B) political weakness and austerity policies.
• C) a global savings glut and reluctance to invest.
• D) negative real interest rates and a depreciating U.S. dollar.
• E) low inflation and high unemployment.

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Definitions:

Break-even Points

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Cash Break-even

The point at which a business's cash expenses equal its cash revenues, resulting in no net cash flow.

Accounting Break-even

The point at which total revenues equal total expenses, indicating no profit or loss from operations.

Financial Break-even

The point at which total revenues equal total costs and expenses, leaving no net profit or loss from a financial perspective.