Business cycles are periodic but irregular variations in economic activity that repeat themselves over time. These cycles consist of alternating periods of expansion and recession, where the economy grows or contracts. While the frequency and duration of these cycles may vary, they typically follow a similar pattern of growth and decline.

Solved

Business Cycles Are

Question 7

Multiple Choice

Business cycles are

A) variations in the economy that are all equal in intensity.
B) seasonal variations in the economy that occur every year.
C) fluctuations in economic output that show a declining growth pattern over time.
D) periodic but irregular variations in economic activity.
E) exactly alike in the amount of time that passes from peak to peak.

Correct Answer: