The statement 'recessions are a normal part of the business cycle' supports which of the following arguments?
Understand the Problem
The question is asking which argument is supported by the statement that recessions are a normal part of the business cycle. This involves analyzing economic concepts related to business cycles and recessions.
Answer
Recessions are temporary and followed by economic growth.
The statement 'recessions are a normal part of the business cycle' supports the argument that recessions are temporary and are followed by periods of economic growth.
Answer for screen readers
The statement 'recessions are a normal part of the business cycle' supports the argument that recessions are temporary and are followed by periods of economic growth.
More Information
Recessions are part of the natural ebb and flow found in the economy, highlighting the importance of cycles in economic theories. After recessions, economies typically experience recovery and growth.
Tips
A common mistake is to view recessions as indicative of long-term economic decline, rather than understanding them as short-term fluctuations.
Sources
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