In the long run, GDP per capita. A) large; no native that best completes the statement or answers the question. differences in differences in economic growth rates result in BⓇ C) large; small D) small; large 2) Which of the following price indices comes closest to measuring the cost of living of the typical household? A) GDP deflator C) producer price index B) small; no B consumer price index D) household price index 3) Which of the following describes a situation in which the person is hurt by inflation? A) a person paid a fixed income during an inflationary period B) a person who borrows money during a period when inflation is under-predicted C) a person who lends money during a period when inflation is over-predicted D) a retiree whose pension is adjusted for inflation When the economy reaches a trough in a business cycle, which of the following will occur? A Income, production, and employment will continue to fall. B) Employment rises, but income and production will continue to fall. C) Income, production, and employment will all begin to rise. D) Income and production will continue to fall, but employment will rise.