Fluctuations around the long-run aggregate supply curve are:
A) called the business cycle.
B) experienced as expansions, recessions, and recoveries.
C) normal for an economy.
D) All of these are true.

Question

Quizplus · Accepted Answer

Fluctuations around the long-run aggregate supply curve are commonly known as the business cycle. These fluctuations are experienced as expansions, recessions, and recoveries and are considered normal for an economy. Therefore, all of the given statements are true.

Fluctuations Around the Long-Run Aggregate Supply Curve Are