Business cycle ﬂuctuations typically arise because
A) the actual supply of goods and services ends up being more or less than what consumers were expecting.
B) the actual demand for goods and services ends up being more or less than the expected supply of goods and services.
C) the actual demand for goods and services ends up being more or less than what ﬁrms were expecting.
D) prices tend to be ﬂexible in the short run.

Question

Quizplus · Accepted Answer

Business cycle fluctuations often occur when the actual demand for goods and services deviates from what firms were expecting, leading to adjustments in production, employment, and prices.

Business Cycle ﬂUctuations Typically Arise Because