Final answer:
A business cycle refers to the short-term fluctuations of economic activity along its long-term growth trend. It involves shifts between periods of rapid economic growth and periods of stagnation or decline.
Step-by-step explanation:
A business cycle refers to the short-term fluctuations of economic activity along its long-term growth trend. It is a period of macroeconomic expansion followed by a period of macroeconomic contraction.
Business cycles are typically measured using the growth rate of real gross domestic product, and they involve shifts over time between periods of rapid economic growth (expansion or boom) and periods of stagnation or decline (contraction or recession).