Which of the following is TRUE regarding business cycles?
I. Cycles are predictable.
II. In each cycle, a peak follows an expansion.
III. Potential GDP fluctuates around real GDP.
A) I and II
B) I and III
C) II and III
D) II only
D
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Widespread assumptions about the first transatlantic railroad did NOT include:
a. that government support was as essential. b. that profits to the nation would be enormous. c. that private investors would be easily compensated for any risk. d. that transatlantic crossing via rail would take a fraction of the time of a clipper ship passage.
The invention of machinery that can double the amount of gold extracted from raw ore will likely lead mining companies to
a. raise the world price of gold to pay for the new machinery. b. lower the world price of gold because any amount can now be produced more cheaply. c. raise the world price of gold because miners' wages must double as their productivity doubles. d. lower the world price of gold only if new mining companies are not allowed to enter the industry.