The business cycle depicts
A) ﬂuctuations in the general price level.
B) the phases a business goes through from when it ﬁrst opens to when it ﬁnally closes.
C) the evolution of technology over time.
D) short-run ﬂuctuations in output and employment.

Question

Quizplus · Accepted Answer

The business cycle refers to short-run fluctuations in output and employment, which are characterized by periods of expansion and contraction. It does not directly depict fluctuations in the general price level, the phases of a single business, or the evolution of technology over time.

The Business Cycle Depicts