The fluctuation of economic activity around a long-term trend, with periods of expansion and contraction, is best described as the

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The business cycle refers to the fluctuations in economic activity around a long-term trend, with periods of expansion (growth) and contraction (recession). It is a common way to describe the ups and downs of the economy. The other options, inflationary index, gross domestic product, and net national product, are different measures of economic activity but do not describe the cyclical nature of the economy.

The Fluctuation of Economic Activity Around a Long-Term Trend, with Periods