Which Statement Is TRUE About Business Cycles

question 115

Multiple Choice

Which statement is TRUE about business cycles?

• A) They all have the same approximate length.
• B) Every cycle is unique.
• C) Each recession causes the same amount of unemployment.
• D) The intensity tends to be constant from recession to recession, but the duration differs.

---

Definitions:

Fiscal Year

A twelve-month period used for calculating annual financial statements in businesses and other organizations, which may or may not align with the calendar year.

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.

Business

An enterprise or corporation participating in business, industry, or professional pursuits.