Which of the following is a TRUE statement?
A) All recessions are due to external shocks.
B) Ultimately, no recession has been due to an external shock.
C) There have been recessions that cannot be explained by external shocks.
D) All recessions and all expansions are due to external shocks.

Question

Quizplus · Accepted Answer

While external shocks can certainly contribute to recessions, not all recessions can be attributed to them. Other factors, such as internal economic imbalances or policy mistakes, can also lead to a recession. Therefore, option C is the only true statement.

Which of the Following Is a TRUE Statement