Which of the Following Is Correct

question 410

Multiple Choice

Which of the following is correct?

• A) Short run fluctuations in economic activity happen only in developing countries.
• B) During economic contractions most firms experience rising profits.
• C) Recessions come at irregular intervals and are easy to predict.
• D) When real GDP falls, the rate of unemployment rises.

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Definitions:

Optimum

The best or most favorable point, level, or condition, especially in terms of efficiency or success.

Indifference Curves

Graphical representations of different combinations of two goods between which a consumer is indifferent, showing preferences regarding consumption.

Consumption When Old

Consumption when old refers to the spending habits of individuals during retirement or later stages of life, often planned through savings and pension.

Retirement

The phase of life where an individual stops full-time work, often accompanied by receiving a pension or retirement benefits.