A business cycle is
A) the pattern of short-run upward and downward movements in total output.
B) the increase in consumer spending that accompanies an increase in disposable income.
C) the cyclical change in the nation's balance of trade.
D) the cyclical movement in the interest rates.

Question

Quizplus · Accepted Answer

A business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of periods of expansions (or booms) and contractions (or recessions), which are the short-run upward and downward movements in total output or GDP.

A Business Cycle Is