Economic activity that is above potential output signals that potential output is about to increase occurs near the trough, rather than the peak, of a business cycle is not possible results from an economic shock to which the economy has yet to adjust fully none of the above

Economic activity that is above potential output signals that potential output is about to increase occurs near the trough, rather than the peak, of a business cycle is not possible results from an economic shock to which the economy has yet to adjust fully none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Economic activity that is above potential output
signals that potential output is about to increase
occurs near the trough, rather than the peak, of a business cycle
is not possible
O results from an economic shock to which the economy has yet to adjust fully
none of the above

Expert Solution

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Economic activities are the action of individuals when they make an exchange of goods and services among them.

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