Which of the Following Is Correct Concerning Recessions

question 353

Multiple Choice

Which of the following is correct concerning recessions?

• A)They come at fairly regular and predictable intervals.
• B)They are associated with comparatively large declines in investment spending.
• C)They are any period when real GDP growth is less than average.
• D)They tend to be associated with falling unemployment rates.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Milton Friedman

An American economist and Nobel laureate who was a leading proponent of monetarism and free-market capitalism.

Serious Inflation

An extreme form of inflation characterized by rapid and uncontrollable rises in prices across the economy.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will lead to an increase in production and economic growth.