Business Cycle Persistence Refers to the Property That

Multiple Choice

Business cycle persistence refers to the property that

A) real GDP is rarely exactly at trend.
B) booms and recessions last a long time.
C) when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend.
D) business cycles are persistently hard to predict.
E) real GDP tends to stay in the peaks and troughs of the business cycle.