Question

Which of these phrases best describes the business cycle?
A) The process of creating policy for businesses, beginning with agenda setting and ending with evaluating the policy's effect on the business's bottom line
B) A recurring cycle of booms and busts, recoveries and recessions
C) A system of managing the economy by increasing or decreasing the supply of money
D) A system of managing the economy by increasing or decreasing federal expenditures

Answer 1

Hi, consider this;

Looking at all these phrase, from A all the way to D

A) The process of creating policy for businesses, beginning with agenda setting and ending with evaluating the policy's effect on the business's bottom line

B) A recurring cycle of booms and busts, recoveries and recessions

C) A system of managing the economy by increasing or decreasing the supply of money

D) A system of managing the economy by increasing or decreasing federal expenditures

I can conclude that none of them is correct since they all relate to different aspects and policies as well.

Answer 2

Business Cycle is a cycle of variations in the GDP around its normal growth rate. It is the expansion and contraction in economic activity. A business cycle  completed when it goes through a single successful and a single retrenchment in sequence.

Business Cycle includes following processes:

1. Expansion

2. Peak

3. Recession

4. Depression

5. Trough

6. Recovery

Option B to some extent describes the Business cycle.