Refer to the Following Figure When Answering the Following Questions

question 103

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 9.1: Output versus Time


-Considering Figure 9.1:

• A) area a is where current output is less than potential output, and area b is where current output is greater than potential output.
• B) area a is where current output is greater than potential output, and area b is where current output is less than potential output.
• C) point c is where economic fluctuations are zero, and at point b, the economy is in a boom.
• D) at point c, current output equals the short-term fluctuations.
• E) area a is where current output is greater than potential output, and at point c, the economy is in a boom.

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Definitions:

Complementary Resources

Assets or inputs that, when used together, enhance the productivity or effectiveness compared to using each separately.

Native-born Workers

Employees who were born in the country where they are working, as opposed to immigrant or foreign workers.

Wage-gap

is the difference in average earnings between different groups of workers, often used to discuss disparities based on gender, race, or education.

Migration Costs

Expenses and sacrifices associated with moving from one location to another, which can include monetary costs, emotional strain, and time.