Which of the following is NOT true about the effects of the utilization of inputs on the business cycles?
A)Even though technology remains constant,utilization of labour and capital leads to business cycles.
B)Utilization of production input is procyclical.
C)Labour hoarding occurs during recessions.
D)Capital utilization is procyclical,but labour utilization is countercyclical.

Question

Quizplus · Accepted Answer

The statement "Capital utilization is procyclical, but labour utilization is countercyclical" is not true. In reality, both capital and labor utilization are procyclical - meaning they increase during expansions and decrease during recessions.

Which of the Following Is NOT True About the Effects