ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Peak, trough, recession, and expansion
|
|
|
Peak, trough, expansion, and recession
|
|
|
Peak, recession, trough, and expansion
|
|
|
Peak, recession, expansion, and trough
|
|
|
Peak, expansion, trough, and recession
|
Detailed explanation-1: -Answer and Explanation: The correct answer is C. peak; recession; trough; recovery. The economic cycle fluctuates between periods of expansion (growth) and contraction (economic decline).
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: -Prosperity Phase : Expansion or Boom or Upswing of economy. Recession Phase : from prosperity to recession (upper turning point). Depression Phase : Contraction or Downswing of economy. Recovery Phase : from depression to prosperity (lower turning Point).
Detailed explanation-4: -Which of the following correctly describes the business cycle? It is the fluctuations of GDP around the potential output. The Great Moderation refers to the: decreased volatility of the U.S. economy.
Detailed explanation-5: -A peak is the highest point of a business cycle and is followed by a contraction and eventual trough. Peaks are called after the fact once economic indicators have confirmed that contraction has set in and isn’t simply noise. Peak to peak business cycles have been lasting longer on average for the U.S. economy.