A business cycle is the period of time in which:
A)a business is established and ceases operations.
B)there are four phases: peak, recession, trough and recovery.
C)the price level varies with real GDP.
D)expansion and contraction of economic activity are equal.
E)none of these are true.

Question

Quizplus · Accepted Answer

A business cycle consists of four phases: peak, recession, trough, and recovery, which describe the fluctuations in economic activity over time.

A Business Cycle Is the Period of Time in Which