Which of the following are parts of the business cycles?

Question

Quizplus · Accepted Answer

Business cycles consist of two phases: expansion (growth) and contraction (recession). Therefore, the correct parts of the business cycles are recession and expansion. Inflation and potential GDP are not part of the business cycles, although they can be affected by the cycles. Real GDP is used to measure the growth of an economy, but it is not considered a part of the cycles. Similarly, peak is a point in the business cycle where the economy has reached its maximum output, but it is not considered a distinct part of the cycle.

Which of the Following Are Parts of the Business Cycles