Suppose that, during a recession, the government borrows money to provide free movies as a distraction from the poor economy. which of the following statements are correct?

choose one or more:
a. the government is engaging in contractionary fiscal policy.
b. crowding-out will occur as individuals choose to rely on free movies instead of purchasing their own.
c. this policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people.
d. the provision of free movies is an example of an automatic stabilizer.
e. the free movies as a distraction from the poor economy will likely raise interest rates as the government borrows more money to finance the purchase.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Next mouth we will have a new moon.