What is NOT True About the Business Cycle?

The statement that 'Unemployment is counter-cyclical' is incorrect. Unemployment is typically pro-cyclical, meaning it tends to rise during economic downturns (recessions) and fall during economic upswings (expansions). This is because businesses tend to lay off workers during recessions as demand for their goods and services decreases, leading to higher unemployment. Conversely, during economic expansions, businesses hire more workers to meet increased demand, resulting in lower unemployment.