Which of the following is true?
A)A "depression" is a recession that is mild and relatively brief.
B)The expansions and contractions of real world business cycles last varying lengths of time.
C)The timing of business fluctuations is regular and,therefore,easily predictable.
D)During the recessionary phase of the business cycle,the rate of unemployment is generally quite low.

Question

Quizplus · Accepted Answer

Real world business cycles vary in length and can have longer or shorter periods of expansion and contraction. A "depression" is actually a severe and prolonged recession. The timing of business fluctuations is not regular and can be difficult to predict. During the recessionary phase of the business cycle, unemployment rates typically increase, not decrease.

Which of the Following Is True