In sequential order, the four phases of the business cycle are
A) trough, peak, expansion, contraction.
B) peak, contraction, trough, expansion.
C) expansion, contraction, peak, trough.
D) contraction, trough, peak, expansion.

Question

Quizplus · Accepted Answer

The correct sequence for the phases of the business cycle is: peak, contraction (recession), trough, and expansion (recovery). This cycle reflects the level of economic activity and growth over time, starting from the highest point (peak), followed by a decline (contraction), reaching the lowest point (trough), and then increasing again (expansion).

In Sequential Order, the Four Phases of the Business Cycle