All of the following are characteristics of short-term economic fluctuations, except: A

Business Dec 23, 2020

All of the following are characteristics of short-term economic fluctuations, except:

A. Expansions and recessions are felt in only a few sectors of the economy

B. Expansions and recessions are irregular in length and severity

C. Unemployment rises during recessions

D. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries

Expert Solution

The correct option is C. Unemployment rises during recessions

Explanation:

Unemployment refers to the lack of job opportunity for the people who are looking for a job. Unemployment is the consequences of the recession that may lead to affect the whole economy in shorter as well as longer-term. Increased unemployment today will lead to an increase in the number of job seekers in the long-run, which affect the economic stability in the long-run.

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