Which of the Following Does NOT Occur as the Economy

Multiple Choice

Which of the following does NOT occur as the economy moves from an expansion to a recession?

A) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point.
B) The change in planned spending exceeds the change in real GDP.
C) The multiplier process reinforces any decrease in spending and pushes the economy into recession.
D) Incomes fall during recessions as firms cut production in response to unplanned increases in inventories.