Which of the following statements about expenditures on advertising is true? when a firm spends a small amount of money on advertising, this signals that the quality of the good is high. if a firm knows its product is of low quality, it will be willing to spend large amounts of money on advertising. when a firm spends a large amount of money on advertising, advertising can be construed as a signal of quality.

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.