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Empirical Evidence from the United States Suggests That Business Cycles

Question 71

Multiple Choice

Empirical evidence from the United States suggests that business cycles have

A) been growing shorter since the Second World War, thereby increasing the sensitivity of inflation to business conditions.
B) been growing shorter since the Second World War, thereby decreasing the sensitivity of inflation to business conditions.
C) been growing longer since the Second World War, thereby increasing the sensitivity of inflation to business conditions.
D) been growing longer since the Second World War, thereby decreasing the sensitivity of inflation to business conditions.
E) shown no pattern since the Second World War and therefore had no systematic effect on the sensitivity of inflation to business conditions.

Correct Answer: