Asked by Melissa Washburn on Jul 11, 2024
Verified
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.
Business Cycle
The fluctuations in economic activity characterized by periods of economic expansion and contraction over time.
Economic Activity
The actions that involve the production, distribution, and consumption of goods and services in an economy.
Unemployment and Inflation
Two key indicators in economics, where unemployment measures the percentage of the workforce that is jobless, and inflation indicates the rate at which the general level of prices for goods and services is rising.
- Understand the concept and implications of the business cycle on the economy.
Verified Answer
AA
Anisha AndrewsJul 16, 2024
Final Answer :
B
Explanation :
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.
Learning Objectives
- Understand the concept and implications of the business cycle on the economy.