What is an appropriate definition for business cycles?
a. Business cycles reflect the flow of money between businesses, individuals, and the government.
b. Business cycles are recurring, regular, and systematic movements in nominal economic activity around a long term trend.
c. Business cycles are recurring, regular, and systematic movements in real economic activity around a long term trend.
d. Business cycles are recurring, irregular, and unsystematic movements in real economic activity around a long term trend.
e. None of the above.
.D
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When demand for a product increases but the supply of the product remains unchanged, the equilibrium price of the product will
a. rise and equilibrium quantity will decrease. b. fall. c. first fall and then return to the original level. d. rise, and equilibrium quantity will increase.
The fraction of capital that wears out every year is known as ________
A) gross investment B) depreciation C) net investment D) devaluation
The study of aggregate economic behavior is referred to as:
A. Microeconomics. B. Macroeconomics. C. Government policy. D. The business cycle.
Which one of the following expressions best states the idea of opportunity cost?
A. "A penny saved is a penny earned." B. "He who hesitates is lost." C. "There is no such thing as a free lunch." D. "All that glitters is not gold."