A business cycle is the:
A) period of time in which expansion and contraction of economic activity are equal.
B) period of time in which there are three phases: peak, depression, and recovery.
C) recurring growth and decline in real GDP.
D) period of time in which a business is established and ceases operations.

Question

Quizplus · Accepted Answer

A business cycle refers to the recurring patterns of growth and decline in real GDP. These cycles typically have four phases: expansion, peak, contraction, and trough. Therefore, option C is the correct answer. Options A, B, and D do not accurately describe a business cycle.

A Business Cycle Is The