ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peak
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Contractionary
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Trough
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Growth
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Detailed explanation-1: -An economic cycle, which is also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.
Detailed explanation-2: -There are six stages of a business cycle: expansion, peak, recession, depression, trough, and recovery. The National Bureau of Economic Research (NBER) measures and studies business cycles and defines the start and end dates of business cycles in the United States.
Detailed explanation-3: -The downward slope of the business cycle is called economic contraction. A contraction is a period when economic output declines. During this phase, the economy is producing fewer goods and services than it did before.
Detailed explanation-4: -There are four stages in an economic recovery that are distinct and interrelated. They are known as expansion, peak, contraction, and trough.