Question

Which of these phrases best describes the business cycle?

Responses

a system of managing the economy by increasing or decreasing the supply of money

a system of managing the economy by increasing or decreasing the supply of money

a recurring cycle of booms and busts, recoveries and recessions

a recurring cycle of booms and busts, recoveries and recessions

a system of managing the economy by increasing or decreasing federal expenditures

a system of managing the economy by increasing or decreasing federal expenditures

the process of creating policy for a business, beginning with agenda setting and ending with evaluating the policy's effect on the business's bottom line

the process of creating policy for a business, beginning with agenda setting and ending with evaluating the policy's effect on the business's bottom line

Answer 1

"a recurring cycle of booms and busts, recoveries and recessions" — the business cycle refers to periodic expansions and contractions in overall economic activity (output, employment, and spending).