The tendency of economies to move in sequence through phases of expansion and contraction of economic activity in a somewhat regular pattern is referred to as a:
A) business rotation.
B) growth and decline cycle.
C) cyclical growth.
D) business cycle.

Question

Quizplus · Accepted Answer

The term "business cycle" refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of periods of expansion (growth) and contraction (decline) in GDP and is characterized by phases such as recession, recovery, growth, and peak. This concept is fundamental in macroeconomics to understand the changing phases of an economy.

The Tendency of Economies to Move in Sequence Through Phases