This Question: 2 pts 20 or 20 (0 complete) This Quiz: 40 pts possible The busine

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This Question: 2 pts 20 or 20 (0 complete) This Quiz: 40 pts possible The business ycde occurs because O A the Fed is constantly increasing the quantity of money O B. aggregate demand and aggregate supply fluctuate, but they don't always fluctuate by the same amount and in the same direction O C. the government is constantly trying to close an inflationary gap, and expenditures in the economy cannot keep pace with the government's agenda D. potential GDP is increasing, and increases in aggregate demand cannot keep pace with increases in potential GDP Click to select your answer

Explanation / Answer

B. aggregate demand and aggregate supply fluctuate, but they don't always fluctuate by the same amount and in the same direction.

A business cycle occurs due to the fluctuations in an economy which is experienced over time that results from changes in the economic growth.

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