ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economists use the term business cycle to describe the ups and downs, or fluctuations, in an economy. More specifically, the term refers to the fluctuating levels of economic activity over a period of time measured from the beginning of one recession to the beginning of the next.

Detailed explanation-2: -The alternating phases of the business cycle are expansions and contractions (also called recessions). Recessions often start at the peak of the business cycle-when an expansion ends-and end at the trough of the business cycle, when the next expansion begins.

Detailed explanation-3: -A business cycle, sometimes called a “trade cycle” or “economic cycle, ” refers to a series of stages in the economy as it expands and contracts. Constantly repeating, it is primarily measured by the rise and fall of gross domestic product (GDP) in a country.

Detailed explanation-4: -Expansion. An economic expansion is a period of growth throughout an economy. Because productivity is increasing, it is generally represented on a curve as an upward movement.