Which of the following are parts of the business cycles?

Question

Quizplus · Accepted Answer

The business cycle refers to the natural fluctuation of economic activity over a period of time. The cycles consist of four phases: expansion, peak, contraction, and trough. The options given in A, recession and expansion, are two of the phases of the business cycle. The options given in B, real GDP and potential GDP, are measures of economic output rather than phases of the business cycle. The options given in C, inflation and recession, refer to the effects of business cycles rather than the phases themselves. The option given in D, peak, refers to one of the phases of the business cycle, but potential GDP is unrelated to the cycle.

Which of the Following Are Parts of the Business Cycles