Step 1: The system equation is:
\[
y[n] = 0.5 y[n-1] + x[n].
\]
This is a first-order linear constant coefficient difference equation (an IIR system).
Step 2: To find the impulse response, set \(x[n] = \delta[n]\). Then the system recursion gives:
\[
h[n] = 0.5 h[n-1] + \delta[n].
\]
For \(n = 0\): \(h[0] = 1\).
For \(n = 1\): \(h[1] = 0.5 h[0] = 0.5\).
For \(n = 2\): \(h[2] = 0.5 h[1] = 0.25\).
Continuing:
\[
h[n] = (0.5)^n u[n].
\]
Step 3: Now check statements:
(A) Wrong, because impulse response is \(0.5^n u[n]\), not \(u[-n]\).
(B) True, because the pole of the system is at \(z = 0.5\), inside the unit circle. Therefore, the system is BIBO stable.
(C) True, because the impulse response \((0.5)^n u[n]\) has infinite length (non-zero for all \(n \geq 0\)).
(D) False, since it has infinite length, not finite.
\[
\boxed{\text{Correct statements: (B) and (C)}}
\]