A business cycle is best defined as
- a period of high inflation followed by a period of deflation.
- a short-run temporary upward or downward movement of economic activity or real GDP that occurs around the growth trend
- the increase in output due to secular growth trend over a long period of cycles.
- naturally occurring fluctuations in overall firm profits caused by seasonal changes and institutional factors.
a short-run temporary upward or downward movement of economic activity or real GDP that occurs around the growth trend.