What does the X-axis of the business cycle typically represent?

The X-axis of the business cycle typically represents time. The business cycle is a visual representation of the fluctuations in economic activity over time, showing periods of expansion and contraction. By plotting economic indicators such as GDP, employment levels, or investment against time, analysts can observe how the economy changes over various periods, making it easier to understand trends, cycles, and turning points in the economy.

Understanding this aspect of the business cycle is crucial as it helps businesses and policymakers make informed decisions based on the current state and trajectory of economic performance. In contrast, the Y-axis usually represents economic activity variables, such as GDP, but time remains consistently plotted along the X-axis as the framework's foundation.