Question

In: Economics

The period of expansion ends with a _______ and the period of recession ends with a _______



The period of expansion ends with a _______  and the period of recession ends with a _______ 

Select one 

a business cycle trough business cycle trough 

b business cycle trough, business cycle peak gestion 

c business cycle peak, business cycle peak 

d. business cycle peak: business cycle trough

Solutions

Expert Solution

Business cycle in simple terms described the increase or decrease in the output of the production of goods and services in an economy over a given period of time

It has mainly six stages that are- expansion, peak, recession, depression, trough and recovery

In the period of expansion, the economy does very good in terms of employment, income production etc

Money supply is also good in this time increased

After that the peak is reached in which the economy hits at its maximum level of growth

In recession there is opposite effect of expansion

The business and economy get into the contraction phase, unemployment increases and economy overall slows down and it is comes to a lowest point called trough

Hence the correct answer there is option d


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