Business cycles in macroeconomics are
A)the economic interrelationships among nations.
B)profits and losses of firms.
C)short-run ups and downs in aggregate economic activity.
D)the increase in a nation's productive capacity over a long period of time.
E)changes in the average standard of living over time.

Question

Quizplus · Accepted Answer

Business cycles refer to short-term fluctuations in the economy's output of goods and services. These fluctuations occur due to changes in economic variables such as investment, consumer spending, and government policies. Business cycles are characterized by periods of expansion (economic growth) and recession (contractions in economic activity).

Business Cycles in Macroeconomics Are