Over the Business Cycle

question 72

Multiple Choice

Over the business cycle,

• A)only real GDP fluctuates around its trend and potential GDP remains equal to its trend.
• B)real GDP fluctuates around its trend.
• C)only potential GDP fluctuates around its trend and real GDP remains equal to its trend.
• D)neither real GDP nor potential GDP fluctuate because they just grow smoothly along their trends.
• E)potential GDP fluctuates around its trend.

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Definitions:

Direct Observation

A research method where phenomena are studied in their natural setting without manipulation.

Evolutionary Psychology

An approach in psychology that examines cognitive traits and behavior through the lens of evolutionary biology, proposing that many aspects of human psychology are the result of adaptive evolution.

Cognitive Psychology

A branch of psychology that explores internal mental processes such as problem solving, memory, learning, and language.

Behaviorism

A theoretical orientation based on the premise that scientific psychology should study only observable behavior, emphasizing the effects of environment on behavior.