Fluctuations around the level of potential output are:
A) called the business cycle.
B) expansions, recessions, and recoveries.
C) normal for an economy.
D) All of these are true.

Question

Quizplus · Accepted Answer

Fluctuations around the level of potential output are known as the business cycle, which includes expansions, recessions, and recoveries. These fluctuations are normal for any economy, so all options given are true.

Fluctuations Around the Level of Potential Output Are