Which term refers to the pattern of short-term ups and downs in an economy?
A) Aggregate output
B) Business cycle
C) Standard of living
D) Balance of payments
E) Demand and supply schedule

Question

Quizplus · Accepted Answer

The term that refers to the pattern of short-term ups and downs in an economy is the business cycle. The business cycle is characterized by four stages: expansion, peak, contraction, and trough. During an expansion, economic activity is increasing, while during a contraction, economic activity is decreasing. These fluctuations are a normal part of the economy and can have various causes, such as changes in consumer spending, government policies, or international events.

Which Term Refers to the Pattern of Short-Term Ups and Downs