Which of the following characterizes business cycles?
A)They are mainly fluctuations in consumption.
B)They are no longer very important due to government policy.
C)They are fluctuations in real GDP and related variables over time.
D)They are easily predicted by competent economists.

Question

Quizplus · Accepted Answer

Business cycles are fluctuations in real GDP and related variables over time. They are caused by various factors like changes in consumer spending, investment, government spending, and international trade. Despite government policies to stabilize the economy, business cycles are still relevant and can have significant impacts on the overall health of the economy. Economists can predict the general trends of business cycles, but precise timing and duration of each phase can be difficult to forecast. Therefore, option D is incorrect.

Which of the Following Characterizes Business Cycles