The business cycle is defined as the

Question

Quizplus · Accepted Answer

The business cycle refers to the irregular fluctuations of real GDP around potential GDP. These fluctuations include periods of expansion (when real GDP is growing faster than potential GDP) and periods of recession (when real GDP is growing slower than potential GDP). This is why D is the best choice as the business cycle does not have a regular growth rate like A, nor does it refer to fluctuations around prices like B or to regular fluctuations below potential GDP like C.

The Business Cycle Is Defined as the