Which of the following statements is TRUE about the National Activity Index?
A) When the index has a zero value,the economy has reached a trough.
B) Negative values always mean the economy is in a recession.
C) Positive values indicate the economy may face a period of increasing inflation.
D) Negative values mean the economy is growing more slowly than its long-term trend.

Question

Quizplus · Accepted Answer

Negative values indicate that the economy is growing more slowly than its long-term trend. However, it does not necessarily mean that the economy is in a recession. A zero value does not indicate a trough, and positive values do not necessarily indicate increasing inflation.

Which of the Following Statements Is TRUE About the National