Business Cycle Persistence Refers to the Property That

question 59

Multiple Choice

Business cycle persistence refers to the property that

• A) real GDP is rarely exactly at trend.
• B) booms and recessions last a long time.
• C) when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend.
• D) business cycles are persistently hard to predict.
• E) real GDP tends to stay in the peaks and troughs of the business cycle.

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Definitions:

Political Influence

The capacity to affect government actions, policies, or decisions through various forms of advocacy or persuasion.

High Birth Rate

A demographic scenario where the number of live births per thousand people in a population is significantly above the average.

Low Outgroup Marriage

The infrequent occurrence of marriages or unions between members of different social, ethnic, or cultural groups.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' worldview or cognition.