If inflation rises unexpectedly by 5%, indicate for each of the following whether the economic actor is , hurt, or unaffected: a union member with a cola wage contract someone with a large stash of cash in a safe deposit box a bank lending money at a fixed rate of interest a person who is not due to receive a pay raise for another 11 months

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.