A business cycle is a:
A) very deep and prolonged economic downturn.
B) period in which output and employment are rising.
C) period in which output and employment are falling.
D) short-run shift between economic upturns and downturns.

Question

Quizplus · Accepted Answer

A business cycle refers to the short-run shift between economic upturns and downturns, which results in fluctuations in economic activity, such as changes in output, unemployment, and inflation. Therefore, option D is the correct choice. Option A refers to a recession, which is a severe and prolonged economic downturn, while options B and C describe the phases of a business cycle rather than a definition of it.

A Business Cycle Is A