Marjorie 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 irregular and unpredictable in the short run, and even trained economists cannot consistently predict when they will occur. While there are general patterns to the business cycle (such as the expansion and contraction of economic activity), the specific timing and severity of each cycle can vary greatly. Therefore, Marjorie's claim that she can predict the business cycle should be met with skepticism.

Marjorie Maintains That She Can Predict When the Economy Is