Final answer:
Advanced economies experience long-term growth but suffer short-term variability due to business cycles, with history showing a trend of economic expansion in leading economies over time, despite fluctuations. The second statement is the correct option
Step-by-step explanation:
The most accurate statement about advanced economies is that they experience a positive growth trend over the long run but can experience significant variability in the short run. This is because advanced economies, as represented by the aggregate supply and demand (AD/AS) diagram, traditionally show a gradual shift to the right in the aggregate supply, indicating a trend of economic growth over time due to factors like increased productivity, investment in human and physical capital, and advancements in technology. However, in the short run, these economies may face fluctuations due to the business cycle, going through phases of recession and expansion that cause GDP to fall and rise. The historical pattern of economic growth in the leading economies since the early nineteenth century, including Western Europe, North America, and more recently, Japan, South Korea, and China, supports this understanding. Despite substantial gains in GDP per capita over time at an average rate of about 2% per year, this long-term growth has been accompanied by cyclical variability in economic activity in the short term.