Question

Business cycle refers to:

a. a period of macroeconomic expansion followed by a period of contraction.
b. the level of inventory of a business over a period of years.
c. a microeconomic explanation of the number of firms that enter and leave the marketplace over a five year period of time.
d. the inherit weakness of a command economy.

Answer 1

Answer: a. a period of macroeconomic expansion followed by a period of contraction.

Explanation:

Business cycle is a period when an economy experiences fluctuation in its economic activities such as rise (expansion) and fall (contraction) in trade, production, businesses and so on. Thus, it is measured by increase and decrease in Gross Domestic Product of a country. Furthermore, it is made up of four phases which are: expansion, peak, contraction and trough. It is also known as economic cycle.

Answer 2

This is the answer:

Business cycle refers to
a. a period of macroeconomic expansion followed by a period of contraction.

Hope this helps. :)