Which of the Following Statements Is TRUE About the National

Multiple Choice

Which of the following statements is TRUE about the National Activity Index?

A) When the index has a zero value,the economy has reached a trough.
B) Negative values always mean the economy is in a recession.
C) Positive values indicate the economy may face a period of increasing inflation.
D) Negative values mean the economy is growing more slowly than its long-term trend.