What is described by the business cycle?

The business cycle is best described by the fluctuations of economic activity over periods of expansion and recession. It reflects the natural rise and fall of economic growth that occurs in an economy over time. These cycles are characterized by periods of economic expansion, where the economy grows, leading to increases in employment, production, and consumer spending, followed by periods of contraction, or recessions, where economic activity slows down, resulting in decreased spending, higher unemployment, and lower production levels.

This definition is central to understanding how economies operate and how different factors, such as consumer confidence, interest rates, and government policies, can influence these cycles. In contrast, the other options refer to characteristics that do not encapsulate the cyclical nature of economic activity. For instance, consistent growth over time does not account for the inevitable downturns, the average growth rate of GDP focuses solely on growth metrics rather than the cyclical pattern involved, and the percentage of unemployment offers a snapshot of joblessness but does not illustrate the broader cyclical nature of economic movements.

Thus, the correct answer emphasizes the inherent fluctuations of the economy, showcasing both the ups and downs that define the business cycle.