Which Statement Is Correct

question 283

Multiple Choice

Which statement is correct?

• A) All sectors of the economy are affected to similar degrees by business fluctuations.
• B) Real output and employment generally show little variance over the business cycle.
• C) The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle.
• D) Recessions have not been severe because economists and statisticians have been able to predict their occurrence and intensity with high accuracy.

---

Definitions:

Pollution Credits

Allowances granted to companies, permitting them to emit a certain amount of pollutants; they can be traded among companies.

Biodiesel

A biofuel derived from natural sources, such as vegetable oils or animal fats, used as an alternative to conventional fossil fuels.

Oil Prices

are the costs associated with purchasing crude oil, which fluctuate based on global supply and demand dynamics.

Present Value

The present worth of a future amount of money or series of cash inflows using a designated return rate.