Question

An economy grows, reaches a peak, then begins a downturn, followed by a period of negative growth (a contraction), that ends in a trough before the next upturn. These ups and downs in an economy are often referred to as __________.

Answer 1

booms
contractions
business cycles
recession and inflation

Answer 2

I would say C) business cycles
I say this because a business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real (GDP). A business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time.

Answer 3

That make sense for you?