Question

Snowdonia is a small country which produces wrought iron and cheesecakes and is experiencing fixed capacity growth in year 1.


1. Which part of the business cycle is Snowdonia in?

a. Recovery

b. Peak

c. Trough

d. Recession


2. Fixed capacity growth is demonstrated on the graph as a movement from point

___________ to point ____________.


3. Long‑run growth in Snowdonia would be illustrated on the graph as a movement from point ___________ to point ___________.


WORD BANK (Q2 & Q3)

- Point A

- Point B

- Point C

Answer 1

Answer:

1. A

It is experiencing fixed capacity

Answer 2

1. The part of the business cycle Snowdonia is : ( A ) Recovery
2. Movement from point A to point B
3. Long-run growth is illustrated as a movement from point C to point B

What is fixed capacity growth ?

An economy with a fixed capacity growth is an economy with fixed amount of resources. Snowdonia experiencing a fixed capacity growth shows that its wrought Iron and cheesecakes are fixed resources in year 1

Hence we can conclude that The part of the business cycle Snowdonia is : ( A ) Recovery Movement from point A to point B .   Long-run growth is illustrated as a movement from point C to point B

Learn more about Fixed capacity growth : https://brainly.com/question/25594630

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