Question

How is gross domestic product used to determine the business cycle?

Answer 1

Answer:

Explanation: Business cycle are used to describe rise and fall in the production output of goods and services in an economy. Business cycles are usually measured using rise and fall of the gross domestic product (GDP). So Both are interelated.

Answer 2

Answer:

Explanation

Business Cycles also known as trade cycles refer to the fluctuations experienced in the economy's activities at a specific period of time. It is measured by determining the rise and fall of Gross Domestic Product. I.e. outputs from all sectors of the economy including households. The GDP can present expansion in the economy (growth) or contraction (decline in output of goods and services).