Business cycles are:
A) short-term patterns of increases and decreases in economic activity around a general trend.
B) irregular fluctuations in the level of economic activity, which rarely occur anymore.
C) predictable economic expansions above the long-term trend.
D) abrupt and unexpected departures from the current economic trend.
E) periodic fluctuations in aggregate demand that depend on the time of the year.

Question

Quizplus · Accepted Answer

Business cycles refer to short-term patterns of increases and decreases in economic activity around a general trend. They are characterized by alternating periods of expansion (increased economic activity) and contraction (decreased economic activity). These cycles are a natural part of the economy and are influenced by factors such as consumer confidence, investment, government policies, and technological advancements.

Business Cycles Are