The logical sequence of the phases of a business cycle is:

Question

Quizplus · Accepted Answer

The peak is the highest point of economic expansion before it transitions into a recession. The recession is a period of contraction where economic activity slows down. The trough is the lowest point of economic contraction before it transitions into an expansion. Finally, the expansion is a period of economic growth where the economy recovers and grows before reaching another peak. Therefore, the correct sequence is peak, recession, trough, expansion.

The Logical Sequence of the Phases of a Business Cycle