Fill the blank The business cycle refers to (alternating periods of growth and contraction, the interest...

Fill the blank

The business cycle refers to (alternating periods of growth and contraction, the interest rate cycle, nominal GDP, real GDP, alternating periods of fiscal and monetary policy) and is usually measured using (alternating periods of growth and contraction, the interest rate cycle, nominal GDP, real GDP, alternating periods of fiscal and monetary policy)

Expert Solution

The business cycle refers to contraction and expansion of the economy which occurs in altering periods and it is usually measured along the real GDP growth where is the real GDP continuously increases for two quarters it is expansion and if it is continuously decreasing for two quarters it is recession or contraction.

Therefore altering periods of growth and contraction ; real GDP are the answers

1)Interest rate cycle deals with the interest ,nominal GDP real GDP are measures and fiscal and monetary policies are actions but not the definition of business cycles and therefore the other options are wrong for the first blank

2) fiscal and monetary policies are actions and not measures while altering growth and contraction is definition of the business cycle and nominal GDP can change due to inflation and that is why usually real GDP is taken and that is the reason why the other options are wrong in the second blank.

Rahul Sunny answered 2 years ago

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