The defining feature of business cycles is that they are
A) changes in the trend component of real GDP.
B) fluctuations about trend in real GDP.
C) fluctuations about trend in the unemployment rate.
D) fluctuations about trend in the level of employment.
E) fluctuations about trend in standards of living.

Question

Quizplus · Accepted Answer

Business cycles are fluctuations about the trend in real GDP, with alternating periods of economic expansion and contraction. These fluctuations can be seen in various economic indicators like employment, investment, consumption, and trade.

The Defining Feature of Business Cycles Is That They Are