Which of the following best describes business cycle activity?

Question

Quizplus · Accepted Answer

Business cycles are described as recurring fluctuations in the level of economic activity. This means that economies do not always remain at a stable level of growth, but instead experience periods of expansion and contraction over time.

Answer: C 
 While the length of each phase of the business cycle can vary, it is generally accepted that the contraction phase (a period of economic decline) lasts longer than the expansion phase (a period of economic growth).

Answer: D 
 The trough of a business cycle is the lowest point of economic decline before the economy begins to recover. While the length of time a trough lasts can vary depending on the severity of the decline, it is generally considered to last about three months. However, this answer choice is not the best overall as it is a specific fact that may not always be true for every business cycle.

Which of the Following Best Describes Business Cycle Activity