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:

Stanley Milgram

An American social psychologist best known for his controversial experiments on obedience to authority conducted in the 1960s.

Leon Festinger

A psychologist known for his theory of cognitive dissonance, which suggests that inconsistency among beliefs or behaviors causes psychological tension that people are motivated to reduce.

Philip Zimbardo

An American psychologist known for conducting the Stanford prison experiment, exploring how social situations can influence human behavior.

Collectivist Cultures

Societies that prioritize collective goals over individual achievements, emphasizing community and social interconnectedness.