A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are: A contraction, recession, expansion, boom
<h3>What are the Stages of the Business Cycle ?</h3>
A business cycle is defined as when it goes through a single boom and a single contraction and the time period to complete this sequence is named as length of the business cycle.
A boom refers to the period of rapid economic growth whereas a period stagnated economic growth is a recession, the first phase expansion where an increase in positive economic indicators like employment, income, wages, profits, demand, and supply of goods etc,
The second stage is peak point where economy reaches a saturation point means maximum growth is attained, followed by recession stage where it follows peak phase and demand for goods, services starts to decline here.
The next stage is the depression where a commensurate rise in unemployment and the economy start to decline, become negative, further decline occurs as well as the demand and supply of goods contract to reach their lowest point called the stage trough.
In the last stage the economy moves to the stage of recovery and Demand starts to pick up due to low prices and population will be positive towards investment.
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your question was incomplete, so the probable question is
A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:
A expansion, trough, recession, peak
B expansion, peak, recession, trough
C trough, expansion, recession, peak
D contraction, recession, expansion, boom
