The business cycle is the
A)relationship between unemployment and inflation.
B)irregular fluctuations in economic activity.
C)positive relationship between the quantity of money in an economy and inflation.
D)predictable changes in economic activity due to changes in government spending and taxes.

Question

Quizplus · Accepted Answer

The business cycle refers to the irregular fluctuations in economic activity, such as growth and recession, that an economy experiences over time. It does not specifically relate to the relationship between unemployment and inflation (Phillips curve), the quantity of money and inflation, or predictable changes due to fiscal policy.

The Business Cycle Is the