1.

Capacity utilization :

A. is usually near 100%
B. represents the percent of the labour force that is employed.
C. is a measure of the proportional of the existing capital stock used for current production.
D. rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production
Answer» D. rises as the economy moves into a recession, since firms must replace unemployed workers with some other resources to maintain production


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