ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -During the expansion phase, an economy will experience strong growth, and interest rates will generally be lower but will begin to increase as the expansion matures. The overall production level increases, and inflation rates begin to rise as the expansion matures.

Detailed explanation-2: -Inflation, meanwhile, slowed to 7.1% year over year in November 2022 from its June 2022 peak of 9%, the highest level in 40 years.

Detailed explanation-3: -Inflation decreases during recessions and increases during expansions (recoveries).

Detailed explanation-4: -A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.

Detailed explanation-5: -The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion. After that point, employment numbers and housing starts begin to decline, leading to a contractionary phase.