BUSINESS ADMINISTRATION
BUSINESS POLICY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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economic growth
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a recession
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full employment
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a peak
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Detailed explanation-1: -An economic cycle is the circular movement of an economy as it moves from expansion to contraction and back again. Economic expansion is characterized by growth. On the other hand, a contraction means a recession, which involves a decline in economic activity that spreads out over at least a few months.
Detailed explanation-2: -Economic contractions often become recessions. A recession is a significant decline in general economic activity extending over a period of time. A general rule of thumb is that two consecutive quarters of economic contraction constitute a recession.
Detailed explanation-3: -Synonyms: downturn, downswing, slump, crunch (informal), decline, hard times (informal), economic slowdown, economic crisis, financial crisis, depression. Sense: Noun: withdrawal. Synonyms: withdrawal, withdrawing, retreat, retirement, pullback, pullout, pulling out, receding.
Detailed explanation-4: -As identified by the NBER The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.
Detailed explanation-5: -When the economy goes up, it’s called “economic growth”; but when it goes down, it’s called “economic contraction” (or “downturn”). If the economy shrinks for two consecutive quarters, it is said to have gone into recession.