Consider the following statements about the business cycle.   Which of the following statements is incorrect ?   A. A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion.   B. A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession.   C. The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider the following statements about the business cycle.
 
Which of the following statements is
incorrect
?
 
A.
A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion.
 
B.
A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession.
 
C.
The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.
 
D.
The business cycle is a periodic cycle in real GDP and employment.
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