The data shows that total profit in the U.S.economy
A)has decreased steadily over time.
B)is not influenced by the business cycle.
C)tends to decrease in recessions, increase in expansions.
D)tends to increase in recessions, decrease in expansions.
E) tends to increase in even years, and decrease in odd years, although no one can explain why.

Question

Quizplus · Accepted Answer

Historical data and economic theory suggest that profit tends to decrease during recessions and increase during expansions. Therefore, option C is the correct choice. Options A, B, D, and E are not supported by evidence or economic theory.

The Data Shows That Total Profit in the U