ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Employment
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Income
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Tax Rate
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Total Output
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Detailed explanation-1: -It usually consists of periods of expansion, recession, depression, trough, recovery, and peak. Business cycles are essentially characterized by the alternations in the contraction and expansion periods in the economy. They are usually determined by key economic indicators.
Detailed explanation-2: -The highest point of the economy, before the recession begins, is called the peak; conversely, the lowest point of a recession, before a recovery begins, is called the trough.
Detailed explanation-3: -When an economy is recovering from a recession, it is in the expansion phase of the business cycle, but it is not experiencing economic growth. Economic growth occurs when the potential and actual output of a nation increases over time.
Detailed explanation-4: -Which of the following is a cause of a trough? A severely outdated product.