ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accounts for the time when business activity has reached a maximum
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Commonly defined as two consecutive quarterly declines in Gross Domestic Product
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Is the lowest levels during a recession
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Occurs when persistent increases in the key measurements of aggregate economic activities are present
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Detailed explanation-1: -In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
Detailed explanation-2: -In the expansionary phase, the economy experiences growth over two or more consecutive quarters. Interest rates are typically lower, employment rates rise, and consumer confidence strengthens.
Detailed explanation-3: -may also be called expansion or recovery/Occurs when of persistent increases in the key measurements of aggregate economic activities are present.
Detailed explanation-4: -A recession is the period between a peak of economic activity and its subsequent trough, or lowest point. Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief.
Detailed explanation-5: -An economic expansion is a period of growth throughout an economy. Because productivity is increasing, it is generally represented on a curve as an upward movement. In some cases, the expansion phase is also known as the “economic recovery” phase because it occurs after the economy has contracted for a long period.