Which of the following statements is correct about the U.S. economy?
A) Economic fluctuations in the U.S. economy have been smoothed out.
B) The U.S. economy experiences economic fluctuations.
C) The U.S. economy has shrunk over the long term.
D) Business cycles usually involve a small number of states.
E) Business cycles only affect production and employment.

Question

Quizplus · Accepted Answer

The U.S. economy experiences economic fluctuations. Business cycles involve periods of economic expansion and contraction, resulting in fluctuations in GDP, employment, and other economic indicators. These cycles are a normal part of the U.S. economy and have not been completely eliminated despite efforts to smooth them out. Options A, C, D, and E are incorrect as they are either false or incomplete statements about the U.S. economy.

Which of the Following Statements Is Correct About the U