CA Foundation P4 · Chapter 6 · Question 2 of 15
Which statement about business cycles is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) They are recurrent but not periodic, varying in length and intensity
Explanation
Business cycles recur, but their duration and amplitude differ from one cycle to another, so they cannot be predicted precisely. They are economy-wide, affecting output, employment, prices and incomes across many sectors.
More Business Cycles MCQs
- Q4Industrial production, which moves at the same time as the overall economy, is an example of a:
- Q5Which of the following is a characteristic of the depression phase?
- Q6According to Keynes, business cycles are caused mainly by:
- Q7The view that the trade cycle is 'a purely monetary phenomenon' caused by expansion and contraction of bank credit is associated with:
- Q8According to Schumpeter, business cycles are caused by: