Which statement characterizes business cycles?
A) They are predictable 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, such as employment, income, and production, over time. These fluctuations are not easily predictable and can have significant impacts on the overall economy. While government policy can influence the severity and duration of business cycles, they cannot be completely eliminated.

Which Statement Characterizes Business Cycles