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 expansion. Given your analysis, inventories are ________.
A) 2009; procyclical
B) 2001; countercyclical
C) 1982; procyclical
D) 1991; procyclical
E) None of these answers is correct.

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 expansion. Given your analysis, inventories are ________.
A) 2009; procyclical 
B) 2001; countercyclical 
C) 1982; procyclical 
D) 1991; procyclical 
E) None of these answers is correct.

Quizplus · Accepted Answer

Inventories are procyclical, meaning they tend to increase during periods of economic expansion. The year 2009 marked the beginning of recovery from the Great Recession, indicating a period of expansion.

Refer to the Following Figure When Answering the Following Questions