You are shown the statements below. Which of the following is/are true? Statement 1: During a recession, the economy experiences rising employment and falling income. Statement 2: Over the business cycle consumption fluctuates more than investment. Statement 3: A business cycle refers to recurrent swings in real GDP. A. Statements 2 and 3 are true. B. None of the statements are true. C. Only Statement 3 is true. D. Statements 1 and 2 are true. Е. All the statements are true.
You are shown the statements below. Which of the following is/are true? Statement 1: During a recession, the economy experiences rising employment and falling income. Statement 2: Over the business cycle consumption fluctuates more than investment. Statement 3: A business cycle refers to recurrent swings in real GDP. A. Statements 2 and 3 are true. B. None of the statements are true. C. Only Statement 3 is true. D. Statements 1 and 2 are true. Е. All the statements are true.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
1
Transcribed Image Text:You are shown the statements below.
Which of the following is/are true?
Statement 1: During a recession, the
economy experiences rising employment
and falling income.
Statement 2: Over the business cycle
consumption fluctuates more than
investment.
Statement 3: A business cycle refers to
recurrent swings in real GDP.
A. Statements 2 and 3 are true.
B. None of the statements are true.
C. Only Statement 3 is true.
D. Statements 1 and 2 are true.
Е.
All the statements are true.
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