Which of the following is true about the business cycles?
A)Production and expenditures are procyclical.
B)Employment is procyclical,but unemployment is countercyclical.
C)Inflation and money growth are procyclical.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the given options are true. Production and expenditures tend to increase during economic expansions and decrease during recessions, making them procyclical. Similarly, employment tends to rise during expansions and fall during recessions, making it procyclical. However, unemployment tends to increase during recessions and decrease during expansions, making it countercyclical. Inflation and money growth also tend to increase during economic expansions and decrease during recessions, making them procyclical.

Which of the Following Is True About the Business Cycles