Over the Course of the Business Cycle

question 18

Multiple Choice

Over the course of the business cycle

• A) the public sector is the most procyclical sector of the economy
• B) manufacturing tends to be countercyclical
• C) the service sector displays greater volatility than manufacturing
• D) construction is the most volatile sector of the economy
• E) the amplitude of fluctuations in the public sector exceeds that of GDP as a whole

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Definitions:

Conglomerate Merger

A type of business combination where two or more corporations in completely unrelated industries combine.

Money Lending

The act of giving money to another party in exchange for future repayment of the principal amount along with interest or other charges.

Province

An administrative division within a country, often with its own local government.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specific sum of money to a third party on demand or at a set time.