_____ Tend to Do Well as the Economy Moves Past

question 181

Multiple Choice

_____ tend to do well as the economy moves past recovery and into expansion.

• A) Financial stocks
• B) Consumer durable goods
• C) Capital goods
• D) Cyclical companies
• E) Consumer staples

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Definitions:

Money Wages

The monetary compensation received by workers for their labor, not adjusted for inflation.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment.

Self-correction

The process by which an economic variable adjusts back to its equilibrium or normal state after a disturbance, without external intervention.

Labor Surplus

A situation where the supply of labor exceeds the demand for labor, leading to unemployment or underemployment.