On a graph showing real national income on the vertical axis and time on the horizontal axis,the fluctuations of real national income around the trend-line would indicate the
A)business cycle.
B)distribution of income.
C)inflation rate.
D)path of potential output.
E)unemployment rate.

Question

Quizplus · Accepted Answer

Fluctuations in real national income around the trend-line indicate the business cycle, which is the cyclical fluctuations in economic activity characterized by periods of expansion and contraction.

On a Graph Showing Real National Income on the Vertical