Comparing State economies to that of the US as a whole shows that
A) about half the States are in recession at any point in time
B) when the US enters a recession, about 20% of the States experience economic expansion, and vice versa
C) there is very little correlation between the national and regional economies
D) there is a highly positive correlation between the national economy and most State economies
E) the 12 Federal Reserve districts experience business cycles independently of each other

Question

Quizplus · Accepted Answer

There is a highly positive correlation between the national economy and most State economies. This means that when the US economy is doing well, most States also experience economic growth, and when the US economy is in recession, most States also struggle economically.

Comparing State Economies to That of the US as a Whole