Business Cycles Are

question 11

Multiple Choice

Business cycles are:

• A) short-term patterns of increases and decreases in economic activity around a general trend.
• B) irregular fluctuations in the level of economic activity, which rarely occur anymore.
• C) predictable economic expansions above the long-term trend.
• D) abrupt and unexpected departures from the current economic trend.
• E) periodic fluctuations in aggregate demand that depend on the time of the year.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor costs.

Direct Labor

Labor costs that are directly associated with the production of goods or the provision of services.

Nails and Screws

Basic hardware items used in construction and carpentry to fasten materials together.