Which of the following is the best definition of a business cycle?
Choose 1 answer:
(A) Changes in the GDP deflator
(B) The steady and always increasing amount of real GDP in an economy
(c) Changes in the inflation rate over time
(D) Changes in real GDP and the unemployment rate over time
(E) Economic growth

Question

Which of the following is the best definition of a business cycle?
Choose 1 answer:
(A) Changes in the GDP deflator
(B) The steady and always increasing amount of real GDP in an economy
(c) Changes in the inflation rate over time
(D) Changes in real GDP and the unemployment rate over time
(E) Economic growth

Accepted Answer

***D*** ∻Key Concept∻ ⚹Business Cycle⚹ ∻Explanation∻ ⚹The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It's characterized by the expansion and contraction in real GDP and is typically accompanied by changes in the unemployment rate.⚹◊What factors can contribute to the fluctuations in real GDP and the unemployment rate over time in an economy according to macroeconomic theory?⍭ Generate me a similar question◊

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