Business cycle persistence refers to the property that A) real ...

[809779]

Business cycle persistence refers to the property that
 
  A) real GDP is rarely exactly at trend.
  B) booms and recessions last a long time.
  C) when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend.
  D) business cycles are persistently hard to predict.

Question 2

One explanation for the sharp decline in inventory investment during the 2007-2009 financial crisis was ________.
 
  A) financing constraints
  B) the rise in the level of income
  C) the volatility of interest rates
  D) the increase in total spending and therefore costs

[milbourne11]

Answer to Question 1

C

Answer to Question 2

A

[809779]

Thank you

[milbourne11]

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