GDP Is a Good Proxy for the Business Cycle Itself

question 23

Multiple Choice

GDP is a good proxy for the business cycle itself since ________.

• A)its real consumption spending component is procyclical and coincident
• B)its real investment spending component is procyclical and coincident
• C)it typically goes up in a boom and down in a recession
• D)all of the above
• E)none of the above

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Definitions:

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of an injury or disease, while memories from before remain intact.

Cramming

A study technique involving intense memorization and learning in a short period, usually right before an examination.

Learning and Memory

The processes by which new information is encoded, stored, and retrieved, essential for adapting and responding to new experiences.

Ebbinghaus

Hermann Ebbinghaus was a German psychologist known for his pioneering work on memory, particularly the discovery of the forgetting curve, which describes the rate at which information is lost over time if there is no attempt to retain it.