What term best explains the cyclical pattern of economic expansion and contraction?

The term that best describes the cyclical pattern of economic expansion and contraction is the business cycle. The business cycle refers to the fluctuations in economic activity that an economy experiences over time, typically measured by changes in real GDP and other economic indicators. This cycle comprises four main phases: expansion, peak, contraction (or recession), and trough.

During the expansion phase, the economy grows, characterized by increasing production, employment, and consumer spending. This is often followed by a peak, where the economy is operating at full capacity. The contraction phase involves a decrease in economic activity, potentially leading to a recession if the decline is significant and prolonged. Finally, the trough represents the lowest point of economic activity before recovery begins.

Other terms listed, like market cycle, trade cycle, and investment cycle, may relate to specific aspects of economic activity or certain sectors but do not encompass the overall economic fluctuations described by the business cycle. The business cycle captures the holistic view of the economy's rise and fall over time, making it the most appropriate term for this question.