Business cycles are the result of
A) irregular shifts of both the AD and SAS curves.
B) irregular shifts of the SAS curve only.
C) regular shifts of both the AD and SAS curves.
D) regular shifts of the AD curve only.

Question

Quizplus · Accepted Answer

Business cycles are characterized by irregular shifts in both the aggregate demand (AD) and short-run aggregate supply (SAS) curves. These shifts can be caused by a variety of factors, including changes in consumer and business confidence, shifts in government policies, technological changes, and global economic conditions. As a result, business cycles are unpredictable and can vary in both their duration and severity.

Business Cycles Are the Result of