ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Peak, Downhill, Pit, Expansion
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Peak, Recession, Pit, Explosion
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Peak, Recession, Trough, Expansion
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Peak, Pit, Recession, Explosion
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Detailed explanation-1: -The four stages of the business cycle are expansion, peak, contraction, and trough.
Detailed explanation-2: -The economy’s movement through these alternating periods of growth and contraction is known as the business cycle. The business cycle has four phases: expansion, peak, contraction, and trough, as shown in Figure 1.
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: -In general, the business cycle consists of four distinct phases: expansion; peak; contraction; and trough.
Detailed explanation-5: -A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.