Refer to the following figure when answering the following questions.
Figure 17.3: Change in Private Inventories: 1980-2012
-Consider Figure 17.3, which shows changes in private inventories. Of the following (approximate) dates, ________ is likely to be a period of recession. Given your analysis, inventories are ________.

Question

Refer to the following figure when answering the following questions.
Figure 17.3: Change in Private Inventories: 1980-2012  
-Consider Figure 17.3, which shows changes in private inventories. Of the following (approximate) dates, ________ is likely to be a period of recession. Given your analysis, inventories are ________.

Quizplus · Accepted Answer

Inventories are typically procyclical, meaning they tend to increase during economic expansions and decrease during recessions. The year 2001 was a period of recession, and inventories would have been procyclical, decreasing during this time.

Refer to the Following Figure When Answering the Following Questions