Which of the following is true of economic expansions?
A) Governments can correctly predict the duration of economic expansions.
B) Economic expansions are defined as the periods between recessions.
C) Output grows and unemployment is high during periods of economic expansion.
D) Consumption increases but investment falls during periods of economic expansion.

Question

Quizplus · Accepted Answer

Economic expansions are defined as the periods between recessions, which are characterized by increasing output, decreasing unemployment, and rising prices. However, governments cannot accurately predict the duration of economic expansions, and consumption and investment both typically increase during these periods.

Which of the Following Is True of Economic Expansions