The Idea That the Business Cycle Is Recurrent Means That

question 6

Multiple Choice

The idea that the business cycle is recurrent means that

• A)declines in economic activity tend to be followed by further declines, and growth in economic activity tends to be followed by more growth.
• B)the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies.
• C)many economic variables to move together in a predictable way over the business cycle.
• D)peaks and troughs of the business cycle occur at regular intervals.

---

Definitions:

Emissions Control

Regulations and technologies designed to reduce pollution and greenhouse gas emissions from various sources.

Marginal Social Costs

The additional cost incurred by society as a whole from the production of one more unit of a good or service.

Abatement Costs

Expenses incurred by firms to reduce environmental negatives, such as pollution.

Pollution Standard

Pollution standards are regulatory norms established by governments or international bodies to limit the concentration of harmful substances released into the environment.