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A distinctive characteristic of business cycle fluctuations, as described in the chapter, is that they:
AAlways last exactly two to three years
BOccur only once in any modern economy
CRecur but not at fixed intervals or equal lengths
DFollow a precisely predictable yearly schedule
Answer & Solution
Correct answer: C. Recur but not at fixed intervals or equal lengths
1. The text stresses that cycles are recurrent and periodic, occurring again and again.
2. However, they do not occur at regular intervals nor are they of the same length.
3. Some cycles run several years while others end in two to three years, so they are not fixed.
4. The correct choice captures recurrence without fixed length; the others impose a regularity the text denies.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 5 "Business Cycles", p.1_
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