Consider the following statements about the business cycle. Which of the following statements is incorrect ? A. A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion. B. A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession. C. The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.
Consider the following statements about the business cycle. Which of the following statements is incorrect ? A. A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion. B. A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession. C. The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.
Chapter6: Business Cycles And Unemployment
Section: Chapter Questions
Problem 2SQP
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Question
Consider the following statements about the business cycle.
Which of the following statements is
incorrect
?
A.
A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion.
B.
A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession.
C.
The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.
D.
The business cycle is a periodic cycle in real GDP and employment.
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