Which of the Following Is Correct

question 30

Multiple Choice

Which of the following is correct?

• A)Over the business cycle investment fluctuates more than consumption.
• B)Economic fluctuations are easy to predict.
• C)During recessions employment rises.
• D)Because of government policy the U.S.had zero recessions in the last 25 years.

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Definitions:

CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Period

A length or portion of time.

Buying Power

Buying power refers to the value of currency to purchase goods and services, influenced by factors like inflation and the strength of the currency.

CPI

The Consumer Price Index represents a measurement that calculates the aggregate weighted cost of a selection of consumer goods and services, including items like food, medical services, and transportation.