[Solved] Short term contractions and expansions in economic activity are called

McqMate

Q.	Short term contractions and expansions in economic activity are called
A.	Expansions
B.	Recession
C.	Deficits
D.	The business cycle
Answer» D. The business cycle
Explanation: The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. It is basicallydefined 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.

2.3k

0

Do you find this helpful?

15

View all MCQs in

Discussion

No comments yet

Related MCQs

The process of converting short term to long term debt by the sale of long term securities and using the funds raised to pay off short-term debt is called:
The term used to describe a sharp slowdown in the rate of economic growth or a modest decline in economic activity is called:
The dominant body of economic thinking, economic method and economic style in the period from 18th to 19th century is termed as
The market for long term loanable funds as different from the market that deals in short term loans is called:
The geographical shifts in domestic economic activity around the world and away from nation states is called:
The market economy in which both private and public enterprises participate in economic activity is called:
Underground economic activity that is not declared for taxation purposes is called
A measure taken in respect of economic activity that has the intention of damage to another country’s economy is called:
Which one of the following would not constitute an economic activity?
Which of the following is not an economic activity?