ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The four stages of the business cycle are expansion, peak, contraction, and trough.

Detailed explanation-2: -The option is true as stagflation is not a part of the business cycle.

Detailed explanation-3: -The business cycle influences the productivity and employment in capital goods firms and consumer durable product firms significantly compared to firms manufacturing consumer nondurables because the amount and standard of nondurable purchases reduce but not as much as the capital good and consumer durables purchases.

Detailed explanation-4: -An expansion is not necessarily economic growth. 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.