A business cycle is
A) the periodic fluctuation of economic activity.
B) the engine of economic growth.
C) a period lasting about 50 years.
D) identical to the consumption life cycle.

Question

Quizplus · Accepted Answer

A business cycle is a periodic fluctuation of economic activity, characterized by alternating periods of expansion and contraction. It is a natural occurrence in a market economy, driven by various factors such as changes in interest rates, consumer confidence, and government policies. The business cycle is not the engine of economic growth, but rather a reflection of the ups and downs of the economic activity. It is also different from the consumption life cycle, which refers to the pattern of individual consumption behavior over a lifetime.

A Business Cycle Is