What term describes the fluctuations in economic activity, including periods of recovery, prosperity, recession, and depression?

The term that accurately describes the fluctuations in economic activity, characterized by periods of recovery, prosperity, recession, and depression, is the Business Cycle. The Business Cycle refers specifically to the cyclical nature of economic activity in an economy over time, involving expansions and contractions in various economic indicators such as GDP, employment, and production levels.

During periods of expansion, economic activity increases, leading to higher employment and production levels. Conversely, during recessions, there is a general decline in economic activity, which may result in increased unemployment and reduced consumer spending. The cycle involves a recurring pattern that can be measured and analyzed to understand the overall economic health of a region or country.

While the Economic Cycle is a broader term that might be used interchangeably in casual conversation, it is the Business Cycle that is traditionally used in economics to specifically capture these fluctuations and their analytical framework.