ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Expansion
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Peak
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Decline
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Recession
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Detailed explanation-1: -The option is true as stagflation is not a part of the business cycle.
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: -A recession is a significant, pervasive, and persistent decline in economic activity. Economists measure a recession’s length from the prior expansion’s peak to the downturn’s trough. Recessions may last as little as a few months, but the economy may not recover to its former peak for years.
Detailed explanation-4: -A growth recession is a significant decline in activity relative to a country’s long-term economic potential.
Detailed explanation-5: -The business cycle The model shows the four phases an economy experiences over the long-run: expansion, peak, recession, and trough.