A business cycle refers to recurring expansions and contractions in the level of aggregate economic activity, measured in terms of Gross Domestic Product (GDP) or Gross National Product (GNP). It includes fluctuations in the level of consumption, business investment, government spending, and net exports.

Solved

A Business Cycle Is

Question 28

Multiple Choice

A business cycle is

A) Recurring fluctuations in the level of consumption expenditures
B) Recurring fluctuations in the level of business investment
C) Recurring expansions and contractions in the level of foreign involvement in aggregate economic activity
D) Recurring expansions and contractions in the level of aggregate economic activity

Correct Answer: