The underlying fluctuations in real GDP due to the business cycle are reflected by fluctuations in
A) inflation.
B) population growth.
C) the labour force.
D) real GDP per capita.

Question

Quizplus · Accepted Answer

The fluctuations in real GDP due to the business cycle are reflected by fluctuations in real GDP per capita as it takes into account changes in population and thus captures the true economic growth of a country. Inflation, population growth, and the labor force may also fluctuate during the business cycle, but they are not necessarily a direct reflection of changes in real GDP.

The Underlying Fluctuations in Real GDP Due to the Business