What Is a Business Cycle

question 121

Multiple Choice

What is a business cycle?

• A) It is a firm's pattern of sales during a given year.
• B) It is the economy's pattern of fluctuations in economic activity: expansion followed by contraction and then by another expansion.
• C) It is the seasonal pattern of fluctuations in consumer spending: increased spending during the holiday season and decreased spending at other times of the year.
• D) It refers to the peaks and troughs in the demand for luxury goods in a country.

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