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 expansion.
C) the price level varies with real GDP.
D) expansion and contraction of economic activity are equal.
E) none of the above are true.

Question

Quizplus · Accepted Answer

According to traditional economic theory, a business cycle is characterized by four phases: peak, recession, trough, and expansion. The cycle typically repeats itself over time, with periods of economic growth and contraction. Therefore, option B is the correct answer.

A Business Cycle Is the Period of Time in Which