Which of the following is true of economic fluctuations?
A) They can be experienced by the world economy as well as by a single nation.
B) They tend to be equal in length and intensity across all nations.
C) They reflect an economy's sociopolitical condition.
D) They tend to become more severe when the government attempts to stabilize an economy.
E) They have been completely offset by appropriate government policies during the last 40 years.

Question

Quizplus · Accepted Answer

Economic fluctuations can be experienced by the world economy, as evidenced by global recessions and expansions. They are not equal in length and intensity across all nations, as each country's economic situation and policy responses vary. Sociopolitical conditions may contribute to economic fluctuations, but they also depend on various economic factors such as consumer spending, investments, and exports. Attempting to stabilize an economy may or may not make fluctuations more severe depending on the policy measures taken. Finally, economic fluctuations have not been completely offset by appropriate government policies during the last 40 years.

Which of the Following Is True of Economic Fluctuations