A __________ is a decline in economic activity that lasts more than a few months and is visible in __________. a.) trough; real GDP b.) recession; real GDP c.) trough; expansion d.) recession; expansion SUBMIT MY ANSWER Report an issue with this question Sophia Tutorial Sophia Tutorial Kate Eskra Kate Eskra Business Cycles: Expansionary/Recessionary (NBER) Sophia Tutorial Sophia Tutorial Make my favorite instructor PDF Version WHAT'S COVERED This lesson will focus on the topic of business cycles and how a business cycle is a depiction of GDP growth and contraction over time. Specifically, this lesson will cover: 1. Business Cycles 2. Recessions 3. Expansions 4. Peaks and Troughs Terms to Know 1. Business Cycles Let's start with the definition of GDP, which is gross domestic product. GDP is the sum of all final goods and services being produced within a nation's domestic borders; we use this to measure economic activity in our country from one period to the next, whether from year to year or quarter to quarter. In theory, we expect GDP growth, which is simply the measure of change in GDP over time. Here is a representation of a business cycle. As you will notice, GDP, referring to the nation's output, is on the y-axis, and time is on the x-axis. Business Cycle Over time, the hope is that there will be a trend of GDP growth. In the short run, however, it is very reasonable for our economy to go through periods of growth, or expansion, and contraction. A