Variation of real GDP around the normal growth rate are called

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Business fluctuations refer to the short-term variations in real GDP around its long-term growth trend. These fluctuations can take the form of economic booms (expansions) and economic busts (contractions). The other choices, such as recessions and inflation variations, are specific types or consequences of business fluctuations. Solow growth rates, on the other hand, refer to the long-term trend growth rate of an economy that is determined by its productive inputs such as labor, capital, and technology.

Variation of Real GDP Around the Normal Growth Rate Are