Which of the Following Is TRUE Regarding Business Cycles

question 261

Multiple Choice

Which of the following is TRUE regarding business cycles?
I. Cycles are predictable.
II. In each cycle, a peak follows an expansion.
III. Potential GDP fluctuates around real GDP.

• A) I and III
• B) II only
• C) I and II
• D) II and III

---

Definitions:

New Product

A new product refers to an item or service that has been recently developed and introduced to the market, offering unique benefits or improvements over existing products.

Retail Chain

A series of retail stores owned and operated by the same company, offering a uniform merchandise set to the public.

Build-To-Order

A manufacturing approach where products are only made after receiving a customer's order, allowing customization.

Nike

An American multinational corporation that designs, manufactures, and markets footwear, apparel, equipment, and accessories, known for its athletic and lifestyle products.