Asked by Pman 0% GG
Which best describes what is represented in the business cycle model?
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GPT-5 mini
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The business cycle model depicts short‑run fluctuations in aggregate economic activity (real GDP and employment) around the economy’s long‑run growth trend (potential or full‑employment output). It shows expansions (rising output) and recessions (falling output), with identifiable peaks and troughs, i.e. cyclical deviations from the underlying trend caused by demand/supply shocks and policy responses.
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