MANAGEMENT

Detailed explanation-1: -Decline. Also referred to as a contraction or downturn, a decline basically marks the end of the period of growth in the business cycle. Declines are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced production by businesses.

Detailed explanation-2: -In the recession phase, the demand for goods and services starts declining rapidly. Prices tend to fall and economic indicators such as income, output and wages start to decline. 4. The growth in the economy continues to decline and there is rise of unemployment in the depression phase.

Detailed explanation-3: -The downward slope of the business cycle is called economic contraction. A contraction is a period when economic output declines. During this phase, the economy is producing fewer goods and services than it did before.

Detailed explanation-4: -Recession – A period in which demand begins to decrease, businesses lower production, unemployment rises, and GDP growth slows for two or more quarters of a calendar year.