### Evaluating the Statement

1. **Understanding Business Cycles**
A business cycle refers to the recurring pattern of expansion and contraction in economic activity. It is characterized by fluctuations in GDP and can be divided into four main phases: expansion, peak, contraction (recession), and trough.

2. **Analyzing GDP Fluctuations**
GDP (Gross Domestic Product) serves as a primary indicator of an economy's health. During expansions, GDP rises, leading to increased employment and production. Conversely, during contractions, GDP falls, indicating a slowdown in economic activity.

3. **Conclusion**
The statement asserts that a business cycle illustrates the ups and downs of GDP in an economy. Given that business cycles are indeed defined by these fluctuations in GDP, the statement holds true.

### Final Answer
**True**: A business cycle does show the ups and downs of GDP in an economy.

Question

### Evaluating the Statement

1. **Understanding Business Cycles**  
   A business cycle refers to the recurring pattern of expansion and contraction in economic activity. It is characterized by fluctuations in GDP and can be divided into four main phases: expansion, peak, contraction (recession), and trough.

2. **Analyzing GDP Fluctuations**  
   GDP (Gross Domestic Product) serves as a primary indicator of an economy's health. During expansions, GDP rises, leading to increased employment and production. Conversely, during contractions, GDP falls, indicating a slowdown in economic activity.

3. **Conclusion**  
   The statement asserts that a business cycle illustrates the ups and downs of GDP in an economy. Given that business cycles are indeed defined by these fluctuations in GDP, the statement holds true.

### Final Answer
**True**: A business cycle does show the ups and downs of GDP in an economy.

Knowee AI · Accepted Answer

### Evaluating the Statement

1. **Understanding Business Cycles**  
   A business cycle refers to the recurring pattern of expansion and contraction in economic activity. It is characterized by fluctuations in GDP and can be divided into four main phases: expansion, peak, contraction (recession), and trough.

2. **Analyzing GDP Fluctuations**  
   GDP (Gross Domestic Product) serves as a primary indicator of an economy's health. During expansions, GDP rises, leading to increased employment and production. Conversely, during contractions, GDP falls, indicating a slowdown in economic activity.

3. **Conclusion**  
   The statement asserts that a business cycle illustrates the ups and downs of GDP in an economy. Given that business cycles are indeed defined by these fluctuations in GDP, the statement holds true.

### Final Answer
**True**: A business cycle does show the ups and downs of GDP in an economy.

Is the following statement true or false?A business cycle shows the ups and downs of GDP in an economy.

Question

Is the following statement true or false?

Solution

Evaluating the Statement

Final Answer

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