Which of the following statements is true?
A) There is one commonly accepted theory about the causes of economic fluctuations.
B) Each business cycle is unique in terms of its length and intensity.
C) The phases of the business cycle are best represented by a linear-trend line.
D) The peak phase of a business cycle occurs when Nominal GDP is at its maximum.

Question

Quizplus · Accepted Answer

Business cycles vary significantly in both their duration and the magnitude of economic activity, making each one unique. There is no single theory that universally explains economic fluctuations, and the phases of the business cycle are cyclical rather than linear. The peak phase of a business cycle is characterized by the highest level of economic activity, but this does not necessarily coincide with the maximum of Nominal GDP.

Which of the Following Statements Is True