The term "business cycle" refers to the fluctuations in economic activity that occur over time. It is a natural part of the capitalist system and involves periods of expansion (when the economy grows) followed by contraction or recession (when the economy declines). The business cycle can be influenced by various factors such as interest rates, government policies, consumer confidence, and global economic conditions. Understanding the business cycle is important for individuals and organizations to make informed decisions about investments, spending, and savings during different phases of the cycle.