Which of the following is TRUE regarding business cycles?
I. Cycles are predictable.
II. In each cycle, a peak follows an expansion.
III. Potential GDP fluctuates around real GDP.
A) I and III
B) II only
C) I and II
D) II and III
Correct Answer:
Verified
Q197: Suppose an economy has some inflation. Then,
Q198: The business cycle refers to
A) changes in
Q199: Potential GDP is
A) a goal that can
Q200: Real GDP measures the
A) general upward drift
Q201: When a recession ends, the turning point
Q203: Real GDP decreases during
A) the movement from
Q204: The business cycle is the
A) regular fluctuations
Q205: A recession is commonly defined as occurring
Q206: What term is used to describe the
Q207: Business cycles
A) are all identical in duration
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