Assume that country a exports on bushel of wheat in exchange for 2.5 bushels of corn from country b. if the terms of trade are beneficial to both countries, which of the following must be true? a. country a has an absolute advantage in the production of wheat. b. the cost of producing a bushel of wheat in country a is less than 2.5 bushels of corn. c. the cost of producing a bushel of wheat in country a is greater than 2.5 bushels of corn. d. country a needs to use more resources to produce wheat than to produce corn. e. country a is producing inside its current production possibility curve.

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.