Which Statement Characterizes Business Cycles

question 53

Multiple Choice

Which statement characterizes business cycles?

• A) They are predictable fluctuations in consumption.
• B) They are no longer very important due to government policy.
• C) They are fluctuations in real GDP and related variables over time.
• D) They are easily predicted by competent economists.

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Definitions:

Household Income

The combined gross income of all members of a household who are 15 years old and older, regardless of their relationship to each other.

Poverty

A state of having insufficient financial resources to meet basic living expenses such as food, shelter, and clothing.

Family of Four

A nuclear family unit consisting of two adults and two children, regarded as a common social unit in many cultures.

Childhood Poverty

Childhood poverty refers to the state of children living below the poverty line, affecting their well-being, education, and development.