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 of the National Activity Index indicate that the economy is growing more slowly than its long-term trend, but not necessarily in a recession.

Which of the Following Statements Is True About the National