Short term contractions and expansions in economic activity are called
(A) Expansions
(B) Recession
(C) Deficits
(D) The business cycle
Correct Answer : The business cycle
Question Asked : SSC CGL Tier-I (CBE) Exam 2016
Explanation : The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. It is basically defined In terms of periods of expansion or recession. During expansions, the economy grows in real terms (i.e. excluding inflation), as evidenced by increases in indicators like employment, industrial production, sales and personal incomes. During recessions, the economy contracts, as measured by decreases in the above Indicators.
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