The business cycle is the:
A) Relationship between unemployment and inflation.
B) Irregular fluctuations in economic activity.
C) Positive relationship between the quantity of money in an economy and inflation.
D) Predictable changes in economic activity due to changes in government spending and taxes.

Question

Quizplus · Accepted Answer

The business cycle refers to the ups and downs in economic activity, including fluctuations in output, employment, and income over time. It is characterized by periods of expansion, contraction, peaks, and troughs, and is influenced by a variety of factors including consumer and business confidence, government policies, and global economic conditions. Option A refers to the Phillips Curve, which represents the inverse relationship between unemployment and inflation. Option C refers to the Quantity Theory of Money, which suggests that changes in the money supply affect inflation. Option D refers to fiscal policy, which can impact the business cycle, but is not the sole cause of economic fluctuations.

The Business Cycle Is The