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How do the turning points in TCU (total capacity utilization) compare with overa

ID: 1170017 • Letter: H

Question

How do the turning points in TCU (total capacity utilization) compare with overall business cycle turning points? Peaks in TCU tend to occur after business cycle peaks and troughs in TCU tend to be coincident with business-cycle troughs Both peaks and troughs in TCU tend to occur before business cycle peaks and troughs Peaks in TCU tend to occur before business cycle peaks and troughs in TCU tend to be coincident with business-cycle troughs ? Troughs in TCU tend to occur after business cycle troughs and peaks in TCU tend to be coincident with business-cycle peak.

Explanation / Answer

Peaks in TCU tend to occur before business cycle peaks and troughs in TCU tend to be coincident with business cycle troughs.

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