Which of the following statements is correct?
A. Business cycles are caused by unanticipated inflation.
B. Business cycles are caused by seasonal unemployment changes.
C. The depth and the length of all business cycles are identical.
D. The depth and the length of all business cycles are different.
Answer: D
You might also like to view...
A key reason that Congress established the Fed to act as a lender of last resort was to prevent ________, the process by which a run on one bank spreads to other banks, resulting in a bank panic
A) contagion B) asset inflation C) moral hazard D) bailouts
"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government b. Spending on education by local and state governments c. Programs like unemployment insurance and Social Security d. Actions by the Federal Reserve aimed at reducing interest rates