Which term describes a repeated movement from good economic times to bad and back?

Which term describes a repeated movement from good economic times to bad and back?

• A. Depression
• B. Recession
• C. Business cycle
• D. Prosperity

Answer: (C)

Repeated fluctuations in economic activity over time—moving from expansion (prosperity) to contraction and back again—are described by the business cycle. This term captures both the positive and negative phases and their recurrence, which is precisely the pattern described in the question. A recession is just a downturn within the cycle, a depression is a more severe, prolonged downturn, and prosperity refers to the favorable phase, not the repeating pattern itself.

Repeated fluctuations in economic activity over time—moving from expansion (prosperity) to contraction and back again—are described by the business cycle. This term captures both the positive and negative phases and their recurrence, which is precisely the pattern described in the question. A recession is just a downturn within the cycle, a depression is a more severe, prolonged downturn, and prosperity refers to the favorable phase, not the repeating pattern itself.