Asked by
Sarai Perez
on Oct 13, 2024
Verified
If the economy was producing at point X and moved to point Y,
A) it would have moved from where the economy operates most of the time to a severe recession.
B) it would have moved from where the economy operates most of the time to a depression.
C) the unemployment rate would increase.
D) it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase.
E) it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase.
Severe Recession
An extended period of significant decline in economic activity across the economy, lasting more than a few months, characterized by high unemployment, low consumer spending, and decreased industrial production.
Depression
An extended period of significant decline in economic activity across a country or the global economy, marked by high unemployment rates, low consumer spending, and decreased industrial output.
Unemployment Rate
The portion of the workforce currently unemployed but actively searching for work opportunities.
- Understand the basic concepts of production possibilities curves and opportunity costs.
- Understand how employment levels relate to economic production and efficiency.
Verified Answer
UW
Learning Objectives
- Understand the basic concepts of production possibilities curves and opportunity costs.
- Understand how employment levels relate to economic production and efficiency.