Business cycles result from recurrent shifts of the aggregate supply and demand curves.

Question

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Business cycles are characterized by fluctuations in the levels of economic growth and activity. These fluctuations are caused by changes in the levels of aggregate supply and demand, which can be influenced by a range of factors such as changes in technology, consumer confidence, government policy, and international trade. As such, business cycles can be thought of as the result of recurrent shifts in the aggregate supply and demand curves.

Business Cycles Result from Recurrent Shifts of the Aggregate Supply