Asked by
Michael Futchi
on Oct 13, 2024
Verified
Which of the following statements is true?
A) The price shock theory of the business cycle is endogenous.
B) Across the board over investment,particularly in the telecommunications industry,prior to 2001 caused a recession in that year.
C) When the Index of Leading Indicators turns downward,a recession almost always follows.
D) The terrorist attacks on 9/11 caused the recession of 2001.
E) The inventory cycle theory of the business cycle is exogenous.
Price Shock Theory
A theory suggesting that sudden and unexpected changes in prices (typically upwards) can have significant adverse effects on an economy.
Business Cycle
The economic cycle of expansion and contraction that occurs within an economy.
Telecommunications Industry
A sector that facilitates communication over significant distances via telephone, internet, cable, and broadcasting.
- Identify the distinctions between causes of recessions that originate from within the economy versus those that come from outside.
Verified Answer
IH
Learning Objectives
- Identify the distinctions between causes of recessions that originate from within the economy versus those that come from outside.