All but one of the following are characteristics of short-term economic fluctuations. Which is the exception?Group of answer choicesNone of the aboveRecessions occur at regular and predictable intervalsExpansions and recessions are felt throughout the economyDurable-goods industries are more sensitive to short-term fluctuations than service and non-durable industriesUnemployment rises during recessions
Question
All but one of the following are characteristics of short-term economic fluctuations. Which is the exception?Group of answer choicesNone of the aboveRecessions occur at regular and predictable intervalsExpansions and recessions are felt throughout the economyDurable-goods industries are more sensitive to short-term fluctuations than service and non-durable industriesUnemployment rises during recessions
Solution
The exception is: "Recessions occur at regular and predictable intervals."
Explanation:
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Economic fluctuations, also known as business cycles, are characterized by periods of expansion and contraction (recessions). However, these cycles are not regular or predictable. They can be caused by a variety of factors, including changes in government policy, technology, consumer confidence, and external shocks.
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It is true that expansions and recessions are felt throughout the economy, although the impact can vary between different sectors and regions.
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Durable-goods industries are indeed more sensitive to short-term fluctuations than service and non-durable industries. This is because consumers can delay purchases of durable goods (like cars and appliances) during economic downturns, but they still need to buy non-durable goods (like food) and services.
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Unemployment typically does rise during recessions, as businesses cut back on hiring or lay off workers in response to decreased demand for their products or services.
So, the statement that "Recessions occur at regular and predictable intervals" is the exception and does not accurately describe a characteristic of short-term economic fluctuations.
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