ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -3. The trough is the bottom of the recession period, unemployment is at its highest, inflation is low. 4. expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.

Detailed explanation-2: -For instance, an economy is often in the expansion phase when unemployment begins to drop and more people are fully employed. Similarly, people tend to prioritize and curb their spending when the economy contracts.

Detailed explanation-3: -During economic expansion, GDP rises, per capita income grows, unemployment declines, and equity markets generally perform well. The peak phase represents the end of an expansionary period after which contraction takes hold.

Detailed explanation-4: -Expansion is the phase of the business cycle when the economy moves from a trough to a peak. Expansions last on average about four to five years but have been known to go on anywhere from 10 months to more than a decade.