Marietjie maintains that she can predict when the economy is going to move up or down in a business cycle.In fact,
A)most economists can predict the business cycle.
B)the business cycle is quite regular, with a new phase beginning every 24 months.
C)business cycles are irregular and unpredictable in the short run.
D)only the World Bank can predict moves in the business cycle.

Question

Quizplus · Accepted Answer

Business cycles are complex and affected by a multitude of factors, making them unpredictable. While economists may use various data and methods to analyze and project trends, there is no consensus or reliable way to predict exact movements in the short run. Therefore, Marietjie's claim to be able to consistently predict the business cycle is likely unfounded. Option A is incorrect because while economists may have some understanding of the business cycle, it is still subject to uncertainty and variable outcomes. Option B is inaccurate because the duration of phases in the business cycle can vary widely and is not fixed at a 24-month interval. Option D is incorrect because while organizations like the World Bank may provide economic forecasts, they do not have exclusive knowledge or control over the business cycle.

Marietjie Maintains That She Can Predict When the Economy Is