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The term business cycle refers to –
  • a)
    fluctuations in aggregate economic activity over time.
  • b)
    ups and down in the production of goods
  • c)
    increasing unemployment
  • d)
    declining savings
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The term business cycle refers to –a)fluctuations in aggregate e...
The fluctuations in economic activity that occur over time. This includes periods of expansion (increased economic growth, employment, and production), followed by periods of contraction (decreased economic growth, employment, and production). These cycles are often characterized by changes in GDP, interest rates, inflation, and consumer spending. Business cycles are a normal part of the economy, and understanding them is important for businesses, policymakers, and investors.
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Community Answer
The term business cycle refers to –a)fluctuations in aggregate e...
Yes, it's right. Business cycle doesn't include only production of good. It consider a economy as a whole. So it is an aggregation of economic fluctuations over a period of time. Don't confuse yourself with the word fluctuation alone.. It represents both inflation and deflation..
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The term business cycle refers to –a)fluctuations in aggregate economic activity over time.b)ups and down in the production of goodsc)increasing unemploymentd)declining savingsCorrect answer is option 'A'. Can you explain this answer?
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