Which of the following is correct?
A)Over the business cycle investment fluctuates more than consumption.
B)Economic fluctuations are easy to predict.
C)During recessions employment rises.
D)Because of government policy the U.S.had zero recessions in the last 25 years.

Question

Quizplus · Accepted Answer

Investment is generally more volatile than consumption over the business cycle as firms will cut back on investment spending during recessions but individuals are more likely to continue consuming at a more constant rate.

Answer: None of the given choices
 Economic fluctuations are notoriously difficult to predict and are subject to a wide range of complex and unpredictable factors.

Answer: None of the given choices
 During recessions, employment tends to decline as firms cut back on hiring and lay off employees.

Answer: None of the given choices
 While the U.S. has experienced a prolonged period of economic growth and stability in recent years, it has still experienced several economic downturns and recessions over the past 25 years. No government policy can completely prevent the business cycle from fluctuating.

Which of the Following Is Correct