Which of the following statements about business cycles is FALSE?
A) They are wavelike movements of economic activity.
B) They are recurring periods of growth and decline in an economy's real GDP.
C) They have five phases which occur in this order: recovery, peak, recession, depression, trough.
D) The expansion and contraction of economic activity is not of equal length or intensity in all business cycles.

Question

Quizplus · Accepted Answer

Business cycles typically include four phases: expansion, peak, contraction (or recession), and trough, not the five phases listed in option C.

Which of the Following Statements About Business Cycles Is FALSE