Question

Business cycles ___________.

O are changes in the number of businesses started
O are fluctuations in stock market
O look at the role of business in the hiring resources
O are ups and downs in the level of economic activity
O are changes in government spending that occur over a period of years

Answer 1

Are ups and downs in the level of economic activity

Step-by-step explanation:

Business cycles is defined as the various ups and downs in the economic activities of a particular nations. These ups and downs are generally measured by the fluctuations in the macro economic variables. These macro economic variables includes:

(i) Gross domestic product (GDP)

(ii) Employment

(iii) Rate of consumption

There are four major phases in the process of business cycle are as follows:

(i) Expansion

(ii) Peak

(iii) Contraction

(iv) Trough