The term "business cycle" refers to ________.
A) the periodic increases and decreases of the economy
B) the periodic purchases of goods and services by the government
C) the increases and decreases in the rate of inflation
D) the periodic growth of the Federal Reserve system
E) the periodic increases and decreases in the GDP due to seasonal factors
A) the periodic increases and decreases of the economy
Explanation: A) Over time, the economy naturally goes through periodic increases and decreases in what is known as the business cycle.
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Which of the following is the reason supply curves typically slope upward?
a. Opportunity cost of production increases as quantity supplied increases. b. Supply increases as opportunity cost decreases. c. Price increases as supply decreases. d. Quantity supplied is unrelated to price. e. The income and substitution effects of a price change.
A monopolistically competitive firm ________ where marginal revenue equals marginal cost.
A. minimizes average total cost B. minimizes average variable cost C. maximizes revenues D. maximizes profits