To ascertain: The various phases of a business cycle.
Explanation of Solution
The 4 main phases of a business cycle are as follows:
Expansion: When the country is facing continuously
Peak: The business cycle equilibrium period is a transition from economic growth to recession. An economic boom is when economic production and unemployment are usually at the highest levels they have been in recent years, and GDP tends to grow positively. Economists do not see peaks as positive occurrences and they see them as an increasingly rising economy.
As the expansion of the economy took quickly, inflation rates rise and the dollar's value decreases. A peak is also an indication of the economic recession to come.
Recession: it is a
Trough: The trough trend of business period that the adjustment process between economic decline and growth that usually signifies a recession. Economic production is the lowest, and in general, the highest unemployment they have been in recent years. Throughout this time the
Introduction: Business cycle is also known as trade cycle or economic cycle, is the upward and downward movement of GDP around its growth trend which is long term. One of the key reasons business cycle is relevant for companies is that it can have a significant effect on customer
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