Which of the following statements is true? multiple choice
1. economic investment refers to the creation and expansion of business enterprises.
2. both economic investment and financial investment refer to the purchase of assets such as stocks, bonds, and real estate.
3. economic investment refers to the purchase of assets such as stocks, bonds, and real estate.
4. financial investment refers to the creation and expansion of business enterprises.

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.