Question 1
Which of the following types of investments is the most volatile?
◦ inventory investment
◦ plant investment
◦ housing investment
◦ equipment investment
Question 2
Productivity fluctuates along a business cycle because
◦ firms usually keep excess labor.
◦ workers tend to become more productive during expansions.
◦ workers tend to become less productive during expansions.
◦ Both workers tend to become more productive during expansions and workers tend to become less productive during expansions are correct.