Question

Periods of growth for the economy followed by downturns describes _____. real GDP final goods and services economic cycle

Answer 1

The correct answer is Economic cycle.

Answer 2

The correct answer is Economic cycle.

The natural fluctuation in economy between the period expansion (economy growth) and contraction (recession) is known as the economic cycle.

The normal growth and downturn in the economy is the basic definition of Economic cycle.

During the time of expansion the investors seek to purchase companies and shares and during the time of contraction the investors look to invest and purchase the companies such as utilities and healthcare.