The term "business fluctuations" refers to:
A) the different stages of a product cycle.
B) changes in the prices of goods and services over time.
C) movement in real GDP around its long-term trend.
D) the trend in real GDP over a long period of time.

Question

Quizplus · Accepted Answer

Business fluctuations refer to the movement in real GDP around its long-term trend. These fluctuations are also known as economic fluctuations or business cycles, and they reflect the ups and downs in economic activity over time. Business fluctuations can lead to changes in employment, prices, and overall economic growth. The other choices do not fully capture the concept of business fluctuations.

The Term "Business Fluctuations" Refers To