Which of the following is true of economic fluctuations?
a. They can be experienced by the world economy as well as by a single nation.
b. They tend to be equal in length and intensity.
c. They reflect an economy's socio-political condition.
d. They tend to become more severe when the government attempts to stabilize an economy.
e. They have been completely offset by appropriate government policies during the last 40 years.
Question 2
Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a 2,000 rebate on new truck sales, what can Ford expect to see?
a. an unprecedented increase in truck sales
b. an immediate response by GM and Dodge
c. a visit from the antitrust authorities of the government
d. a revolution from Ford stockholders
e. announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years
