In general,a business cycle goes through its phases in the following sequence:
A) trough, peak, expansion, recession.
B) recession, trough, expansion, peak.
C) trough, recession, expansion, peak.
D) trough, expansion, recession, peak.
E) expansion, recession, trough, peak.

Question

Quizplus · Accepted Answer

The business cycle typically begins with a peak, where economic activity is at its highest, and then enters a period of contraction and recession. This is followed by a trough, where economic activity reaches its lowest point. From there, the economy begins to expand once again and enters a period of growth until it reaches another peak. Therefore, the correct sequence of phases is: peak, recession, trough, expansion, peak. Choice B is the only option that follows this order.

In General,a Business Cycle Goes Through Its Phases in the Following