Suppose that, during a recession, the government borrows money to provide free wireless internet access in urban areas. which of the following statements are correct? choose one or more: a. this policy will likely be accompanied by an impact lag as the policy takes time to make its way to the people. b. the provision of free internet service is an example of an automatic stabilizer. c. the free wireless internet access in urban areas will likely raise interest rates as the government borrows more money to finance the purchase. d. the government is engaging in contractionary fiscal policy. e. crowding-out will occur as individuals choose to rely on free internet service instead of purchasing their own.

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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.