Which of the Following Is Characteristic of Business Cycles

question 40

Multiple Choice

Which of the following is characteristic of business cycles?

• A) consumption displays greater volatility than GDP
• B) investment remains relatively stable throughout the business cycle
• C) the inflation rate is a leading indicator of recessions and expansions in GDP
• D) the unemployment rate is a leading indicator of recessions and expansions in GDP
• E) the growth rate of wages fluctuates less than the growth rate of GDP

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Definitions:

CCA

Cold Cranking Amps; a rating used to describe a battery's ability to start an engine in cold temperatures.

Sealed Lead-Acid Battery

A type of rechargeable battery that uses lead peroxide and sponge lead, contained in a sealed unit to prevent leakage and reduce maintenance.

Carbon Pile Testing

A method for assessing the performance of an electrical component or system, such as a battery or alternator, by applying adjustable loads.

Degrees Fahrenheit

A scale for measuring temperature where the freezing point of water is 32 degrees and the boiling point is 212 degrees under standard atmospheric conditions.