Short-run fluctuations in output and employment are called:
A) sectoral shifts.
B) the classical dichotomy.
C) business cycles.
D) productivity slowdowns.

Question

Quizplus · Accepted Answer

Short-run fluctuations in output and employment are known as business cycles. Sectoral shifts refer to changes in the demand for labor in different sectors, the classical dichotomy is the idea that changes in the money supply affect only nominal variables (such as prices and wages) and not real variables (such as output and employment), and productivity slowdowns relate to a decline in the growth rate of output per worker.

Short-Run Fluctuations in Output and Employment Are Called