Business cycles are A. alternating periods of smoothly expanding and contracting economic activity, which are usually illustrated using movements in nominal GDP. B. alternating periods in which real GDP increases in an expansion to a business cycle trough and then decreases in a recession to a business cycle peak. C. all roughly the same in duration and severity. D. alternating periods of expanding and contracting economic activity, which are usually illustrated using movements in real GDP.

Question

Business

Sasha Costa

11 September, 17:05

Business cycles are A. alternating periods of smoothly expanding and contracting economic activity, which are usually illustrated using movements in nominal GDP. B. alternating periods in which real GDP increases in an expansion to a business cycle trough and then decreases in a recession to a business cycle peak. C. all roughly the same in duration and severity. D. alternating periods of expanding and contracting economic activity, which are usually illustrated using movements in real GDP.

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Shea Osborn · Answer 1

D. alternating periods of expansion and contraction of economic activity, usually illustrated with movements of real GDP.

Explanation:

The business cycle concerns cyclical macroeconomic fluctuations resulting in periods of expansion and contraction of production, ie periods when the market is business-prone and periods less prone, ie in crisis. The cycle and business is measured through real GDP.