CA Foundation · Business Economics · Business Cycles
Which of the following is a recognised feature of business cycles as described in the CA Foundation Business Economics syllabus?
Business cycles are periodic and recurrent but not exactly regular. Their length and intensity vary from one cycle to the next, so no fixed duration applies. They are also economy-wide fluctuations rather than changes in one industry or one type of economy.
- AThey are periodic and recurrent, but not exactly regular in length or intensityCorrect
- BThey occur only in agricultural economies and never in industrial ones
- CThey always last exactly ten years from one peak to the next
- DThey affect only a single industry and leave other sectors unchanged
Explanation
Business cycles recur over time, but their duration and intensity vary, so they are not perfectly regular. The claim of an exact ten-year length is wrong because no fixed period exists. Cycles are also not confined to agriculture or a single industry, as they spread across the economy.
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