All of the Following Statements Are True EXCEPT

question 5

Multiple Choice

All of the following statements are true EXCEPT:

• A)when changes in real GDP are positive,the economy is said to be expanding.
• B)peaks in the business cycle tend to occur when the capacity-to-output is smallest.
• C)troughs occur when the capacity-to-output gap is the largest.
• D)two consecutive quarterly declines in GDP are generally said to be a recession.

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Definitions:

Resale Value

The future value at which an asset can be sold, based on its depreciation or appreciation over time.

Automobiles

Automobiles are motor vehicles with wheels designed primarily for the transportation of people rather than goods.

Regression Equation

A mathematical equation that allows prediction of one behavior when the score on another variable is known.

Predict

To declare or indicate a likely occurrence or outcome in the future based on current knowledge or analysis.