Question

Which of the following statements is true concerning the historical picture of business activity in the United States?

a. The business cycle has been consistently stable throughout history.
b. Recessions and economic downturns have never occurred in the United States.
c. Economic prosperity has been continuous with no fluctuations.
d. The United States has experienced periods of economic expansion and contraction.

Answer 1

The United States has experienced periods of economic expansion and contraction.

Step-by-step explanation:

According to historical data, the United States has experienced periods of economic expansion and contraction, making option d. The United States has experienced periods of economic expansion and contraction true concerning the historical picture of business activity in the country.

These fluctuations are part of the business cycle, which is a cyclical pattern of economic growth and decline. For example, the Great Depression in the 1930s was a severe economic downturn that lasted several years.

Factors such as changes in consumer spending, business investment, government policies, and international trade can influence the cyclical behavior of the economy.