BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Growth
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Introduction
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Maturity
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Decline
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Detailed explanation-1: -What Are the Stages of an Economic Cycle? An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.
Detailed explanation-2: -The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
Detailed explanation-3: -A peak in the business cycle occurs when economic activity reaches its highest point and begins to slow down or turn down. The contraction phase begins when economic activity starts to fall, or economic growth becomes negative.
Detailed explanation-4: -The phase of the business cycle where the economy is growing slower than usual is called: an economic contraction.