ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The upward slope of the business cycle is called economic expansion. An expansion is a period when economic output increases. That is, more goods and services are being produced in the economy.

Detailed explanation-2: -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-3: -Economic recovery is the business cycle stage following a recession that is characterized by a sustained period of improving business activity. Normally, during an economic recovery, gross domestic product (GDP) grows, incomes rise, and unemployment falls as the economy rebounds.

Detailed explanation-4: -expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.

Detailed explanation-5: -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.