Business Cycle Persistence Refers to the Property That

question 34

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.

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Definitions:

Prescribing Norms

The process of establishing expected behaviors or rules within a group or society, often dictating how members should act.

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