BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In the graph above, the curve above the trend line represents the expansion phase of the business cycle. The periods of expansion (economic growth where real output increases) follow a period of recessions. The booms characterize fast economic growth, which tends to be inflationary and unsustainable.

Detailed explanation-2: -Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.

Detailed explanation-3: -A trendline is a line drawn over pivot highs or under pivot lows to show the prevailing direction of price. Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction.

Detailed explanation-4: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough.

Detailed explanation-5: -Peak. The peak phase follows the expansion in a business cycle. The peak of the business cycle is the instance right before key economic indicators start to fall. At this time, prices are at their highest, and the economy can “overheat, ” meaning businesses can no longer satisfy consumer demands.