Question

Changes in the growth rate of potential output and deviations of actual output from potential output are two logical explanations for:

A. skill-biased technological change.

B. the decline in the natural rate of unemployment.

C. increasing wage inequality.

D. short-term economic fluctuations.

Answer 1

Changes in the growth rate of potential output and deviations of actual output from potential output can both be logical explanations for short-term economic fluctuations.

Step-by-step explanation:

Changes in the growth rate of potential output and deviations of actual output from potential output can both be logical explanations for short-term economic fluctuations.