The business cycle progresses from an expansion to a peak to a recession and then to a trough.

Question

Quizplus · Accepted Answer

The business cycle describes the rise and fall in production output of goods and services in an economy. It progresses from an expansion (increasing economic activity), to a peak (the highest point of economic activity), followed by a recession (a period of declining economic activity), and finally to a trough (the lowest point of economic activity), before the cycle repeats.

The Business Cycle Progresses from an Expansion to a Peak