Which of the following statements is true?

[armygirl]

Question 1

When the economy is in a slump, labor productivity tends to fall because firms have

◦ excess capital.
◦ excess labor.
◦ too little capital.
◦ too little labor.

Question 2

Which of the following statements is 
true?

◦ The long-run potential of the economy declines as output per worker falls during a recession.
◦ The long-run potential of the economy increases as output per worker rises during an expansion.
◦ 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.
◦ Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.

[Juro]

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[armygirl]

TYSM

[frankwu0507]

Thanks for the timely response, appreciate it