Business cycles are viewed as:
A) movements in the short-run equilibrium.
B) situations where aggregate demand does not equal short-run aggregate supply.
C) inevitable; every economy must experience them.
D) movements in the long-run equilibrium.

Question

Quizplus · Accepted Answer

Business cycles are fluctuations in economic activity over time, characterized by expansions (increases in output, employment, and income) and contractions (decreases in output, employment, and income). These movements are viewed as deviations from the economy's short-run equilibrium.

Business Cycles Are Viewed As