The two key phases of a business cycle are:
A)stagflation and hyperinflation.
B)depression and contraction.
C)contraction and expansion.
D)recession and deflation.

Question

Quizplus · Accepted Answer

The two key phases of a business cycle are contraction and expansion. During the contraction phase, there is a decline in economic activity, such as a decrease in GDP, investment, and employment. This is followed by an expansion phase, which involves an increase in economic activity, such as rising GDP, investment, and employment. The other options, such as stagflation, hyperinflation, depression, recession, and deflation, are not phases of the business cycle but rather economic phenomena that can occur during certain phases.

The Two Key Phases of a Business Cycle Are