The sequence of business cycle phases is:
A) peak, trough, expansion, recession.
B) peak, expansion, trough, recession.
C) peak, recession, trough, expansion.
D) peak, expansion, recession, trough.

Question

Quizplus · Accepted Answer

The correct sequence of business cycle phases is peak, recession, trough, and expansion. The peak marks the height of economic growth, after which there is a downturn leading to a recession. The trough is the lowest point of the economic contraction, and from here begins the expansion, where the economy begins to grow again.

The Sequence of Business Cycle Phases Is