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 and often differ in magnitude.
C)The timing of business fluctuations is regular and therefore easily predictable.
D)During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.

Question

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 and often differ in magnitude.
C)​The timing of business fluctuations is regular and therefore easily predictable.
D)​During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.

Quizplus · Accepted Answer

Real world business cycles do not follow a regular pattern and can differ in duration and severity. A depression is not simply a mild and brief recession, as suggested in choice A. Choice C is incorrect because the timing of business cycles is not entirely predictable. Choice D is incorrect because the contractionary phase (recession) of the business cycle is generally associated with an increase in unemployment.

Which of the Following Is True