Final answer:
The business cycle describes alternating periods of expansion and contraction in the economy, with recession and recovery being the correct term.
Step-by-step explanation:
The correct answer is C. Recession and recovery.
The term that describes alternating periods of expansion and contraction in the economy is the business cycle. The economy goes through a cycle of economic ups and downs, with periods of expansion characterized by increased economic activity, growth, and prosperity, followed by periods of contraction known as recessions. These recessions are then followed by recovery, where the economy starts to grow again.
For example, during a period of economic expansion, indicators like GDP growth, low unemployment rates, and high consumer confidence typically reflect a healthy and prosperous economy. On the other hand, during a recession, economic indicators tend to show a decline in GDP, high unemployment, and decreased consumer spending.