Business cycles
A)occur every five years in Canada.
B)are always caused by the central bank.
C)have a single cause, and unpredictable comovements.
D)cannot be prevented, according to the consensus among macroeconomists.
E)have potentially many causes, but regular comovements.

Question

Quizplus · Accepted Answer

Business cycles have potentially many causes, such as changes in government policy, shifts in consumer preferences, or fluctuations in international trade, and tend to have regular comovements, such as changes in investment, output, and employment. While they cannot be fully predicted or prevented, policymakers can take measures to mitigate their effects. Business cycles are not always periodic or uniform in length, and are not solely caused by the central bank. The consensus among macroeconomists is that countercyclical policy can help stabilize the economy during downturns.

Business Cycles