Consider Short-Run Fluctuations in Real GDP Around Its Trend Value

question 102

Multiple Choice

Consider short-run fluctuations in real GDP around its trend value.We can say that such fluctuations are

• A)generally ignored by economists,because these fluctuations do not affect behaviour of other variables such as the unemployment rate.
• B)generally ignored by economists,because these fluctuations are constant and predictable.
• C)referred to in economics as "background noise."
• D)referred to in economics as "the business cycle."
• E)unimportant to the study of macroeconomics.

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