Quiz:VAT Chapter 24 Economic Growth, Business Cycles, an AT Chapter 24 rted: Sep

Question

Quiz:VAT Chapter 24 Economic Growth, Business Cycles, an AT Chapter 24 rted: Sep 13 at 12:32am uiz Instructions Question 12 0.19 pts What is a possible contributing factor to the decrease in the severity of downturns in the business cycle after World War 11? O The fact that secular growth trends have generally increased since World War I. The fact that the economy has hit a long-term equilibrium point. OClassical fiscal policies where laissez-faire policies are implemented. This can lead to business cycles being dampened and smoothed O Keynesian fiscal and monetary policies, where overall demand in the economy is managed. O Increased trade between Europe and the United States after World War II Next . No new data to save. Last checked at 2:54am Submit Quiz 0 888 Fa 2 9 0

Explanation / Answer

The possible contributing factor to the decrease in the severity of downturns in the business cycle after World War II is that The United States economy experienced an unprecedented period of prosperity during and after World War II
And Because the economy tends to operate at or near full capacity during this periods of prosperity.

It means the fact that the economy has hit a long term equilibrium point.

So correct ans is b) .

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