The business cycle is defined as
A)changes in the stock market.
B)changes in financial markets.
C)persistent growth in potential GDP.
D)irregular ups and downs in production and jobs.
E)the period of time during which the unemployment rate is rising.

Question

Quizplus · Accepted Answer

The business cycle refers to the ups and downs in economic activity, including fluctuations in production, employment, and other economic indicators. It is characterized by phases of expansion, peak, contraction, and trough. The business cycle can be caused by a variety of factors, including changes in consumer demand, government policies, and international events. While the stock market and financial markets can be affected by changes in the business cycle, they are not the defining factors of the cycle itself. Additionally, the business cycle is not necessarily characterized by persistent growth in potential GDP, as periods of contraction and trough can lead to a decline in potential GDP. Finally, while the unemployment rate may be a key indicator in measuring the impact of the business cycle on the labor market, it is not the defining characteristic of the cycle itself.

The Business Cycle Is Defined as