Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The long-run potential of the economy declines as output per worker falls during a recession.
B) The long-run potential of the economy increases as output per worker rises during an expansion.
C) The long-run potential of the economy increases as output per worker rises during an expansion, but the long-run potential of the economy doesn't change as output per worker falls during a recession.
D) Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.