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qid 7486 · economics
Question: A nation is producing at a point inside of its production possibility curve. Which of the following is a possible explanation for this outcome?
- This nation has experienced a permanent decrease in its production capacity.
- This nation has experienced slower than usual technological progress.
- This nation has avoided free trade between other nations.
- This nation is experiencing an economic recession.
Our answer: D. This nation is experiencing an economic recession. Source quote machine-checked (exact quote)
How it was answered
Stored method, replayed by code (kind: formula)
Current source
Federal Reserve Education, "The Production Possibilities Frontier: Underemployment and Economic Growth"
“Why would an economy produce below its potential? Well, it could be in a recession, which is a significant decline in general economic activity extending over a period of time.”
Source quote machine-checked (exact quote)
Earlier version (superseded)
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
No public source has been found for this card yet (2 places checked internally).
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