The business cycle is: a. the pattern of increases and decreases in the money supply. b. the term used to describe fluctuations in output around its long-term trend. c. the length of time required by a firm to buy inputs and produce and sell output. d. regular and predictable.

The correct answer is option b.

Explanation:

The business cycle can be defined as the fluctuations in the level of output of goods and services produced in an economy in a year. It is also referred to as the trade cycle.

The business cycle consists of several stages such as recession, depression, expansion, boom or peak, recovery, etc.

The output level tends to fluctuate around its long term trend.