BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Recurring upswings and downswings in an economy’s real GDP over time are called: business cycles.

Detailed explanation-2: -Real gross domestic product (GDP)-total economic output adjusted for inflation-is the broadest measure of economic activity. The economy’s movement through these alternating periods of growth and contraction is known as the business cycle.

Detailed explanation-3: -Business cycles are a type of fluctuation found in the aggregate economic activity of a nation–a cycle that consists of expansions occurring at about the same time in many economic activities, followed by similarly general contractions (recessions). This sequence of changes is recurrent but not periodic.

Detailed explanation-4: -Most economists agree that the immediate cause of most business cycle variation is: an unexpected change in the level of total spending. An unexpected increase in total spending will cause an increase in GDP: if prices are sticky.

Detailed explanation-5: -A sustained period in which real GDP is rising is an expansion; a sustained period in which real GDP is falling is a recession.