The "business cycle" refers to
A) short-run fluctuations in macroeconomic activity.
B) a long-run increase in GDP.
C) changes in the economy over the course of the four seasons.
D) changes in the economy between winter and summer.

Question

Quizplus · Accepted Answer

The business cycle refers to the fluctuation of economic activity over time, including periods of expansion and contraction. It is a cyclical pattern that occurs in the short-run and is characterized by changes in GDP, employment, productivity, and other macroeconomic variables. The other choices, B, C, and D, refer to different concepts than the business cycle.

The "Business Cycle" Refers to