ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Early cycle: Generally, a sharp recovery from recession, as economic indicators such as gross domestic product and industrial production move from negative to positive and growth accelerates. More credit and low interest rates aid profit growth. Business inventories are low, and sales grow significantly.

Detailed explanation-2: -The business cycle goes through four major phases: expansion, peak, contraction, and trough. All economies go through this cycle, though the length and intensity of each phase varies.

Detailed explanation-3: -The United States is in the late-cycle expansion phase with a rising likelihood of recession in 2023. End-of-cycle dynamics include a tight labor market, declining profit margins, rising inventories, tightening credit conditions, contractionary monetary policy, and an inverted yield curve.

Detailed explanation-4: -The trough is the bottom of the recession period, unemployment is at its highest, inflation is low.