BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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peak
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trough
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expansion
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contraction
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Detailed explanation-1: -The recession is the stage that follows the peak phase. The demand for goods and services starts declining rapidly and steadily in this phase.
Detailed explanation-2: -The point at which an expansion ends and a recession begins is called the peak of the business cycle. Real GDP then falls during a period of recession.
Detailed explanation-3: -Contraction, in economics, refers to a phase of the business cycle in which the economy as a whole is in decline. A contraction generally occurs after the business cycle peaks, but before it becomes a trough.
Detailed explanation-4: -An economic contraction happens when domestic output, such as GDP decreases. It leads to a decrease in other areas, such as individual income, production, and sales. Unemployment rates may increase.