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Here are four statements about business fluctuations, each of which may be true or false. I They are irregular. II They are unpredictable. III Recessions are characterized by falling output and employment. IV Generally speaking, recoveries last longer than recessions. Choose the correct option from the list below. A I, II, and III are true, IV is false. B I, Ⅱ, and IV are true, III is false. C III and IV are true, I and II are false. D I, III, and IV are true, II is false. E All four statements are true.
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Answer #1

All the four statements are true. I and II are undoubtedly true and so is III by the virtue of its very description. For the last one, it has generally been seen that recoveries last very long. Consider the economies after Great Depression. Many economies took a long time to cope and emerge again from it. The recovery phase is very long.

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