Which of the following statements about business cycles in the U.S. is most accurate?
A) Business cycles occur precisely every 5 years.
B) Long-term business cycles have only two phases-boom and bust.
C) Seasonal business cycles occur within a year.
D) Business cycles are based on theories.

Question

Quizplus · Accepted Answer

Business cycles are the periodic rises and falls that occur in economies over time. Economists look at a number of types of cycles, from seasonal cycles that occur within a year to cycles that occur every 48 to 60 years. Economist Joseph Schumpeter identified the four phases of long-term business cycles as boom, recession, depression, and recovery. Finally, business cycles are based on facts, but what those facts describe can be explained only by using theories.

Which of the Following Statements About Business Cycles in the U.S