Assuming fixed potential output is problematic because it may take as much as __________ for an economy to move out of a recession,but potential output changes from __________.
A) one month;month to month
B) one quarter;quarter to quarter
C) one quarter;decade to decade
D) six months;year to year
E) two years;quarter to quarter

Question

Quizplus · Accepted Answer

An economy can take up to two years to recover from a recession, and potential output can change from quarter to quarter due to various economic factors.

Assuming Fixed Potential Output Is Problematic Because It May Take