Business cycles are A Predictable economic expansions above

Business cycles are:

A. Predictable economic expansions above the long-term trend.

B. Irregular fluctuations in the level of economic activity, which rarely occur anymore.

C. Periodic fluctuations in aggregate demand that depend on the time of the year.

D. Short-term patterns of increases and decreases in economic activity around a general trend.

E. Abrupt and unexpected departures from the current economic trend.

Solution

Consider the given problem here the business cycle is the pattern of expansion, contraction and recovery of output employment and unemployment in an economy over time.

=> “Short-term patterns of increase and decrease in economic activity around a general trend”, => “D” is the correct option.