Among the Structural Changes That Have Made Recessions Less Severe

Multiple Choice

Among the structural changes that have made recessions less severe in recent years is the

A) willingness of the federal government to balance the budget each and every year.
B) fact that firms on average now hold much larger inventories, which serve as buffers to unexpected shocks.
C) fact that the service sector now dominates the U.S. economy, and the demand for services is typically more stable than that for goods.
D) decision by the Fed to adhere to a strict money growth rate rule.
E) rapid growth in productivity in basic manufacturing industries such as steel and chemicals.