What is the business cycle?
A)The periodic cycles of profits and losses that all firms experience.
B)The natural evolution of new firms growing quickly at first,then slowing and fading into obsolescence.
C)The fact that Real GDP falls as often as it rises.
D)The expansionary and contractionary phases in the growth rate of Real GDP.

Question

Quizplus · Accepted Answer

The business cycle refers to the fluctuations in the growth rate of Real GDP over time, which includes both expansionary and contractionary phases. These cycles can occur over several years and can be influenced by various economic factors such as government policies, economic shocks, and changes in consumer behavior.

What Is the Business Cycle