Exhibit 12-1 Business cycle

-In Exhibit 12-1,the recession phase of the business cycle can be represented by:

Question

Exhibit 12-1 Business cycle
 
-In Exhibit 12-1,the recession phase of the business cycle can be represented by:

Quizplus · Accepted Answer

The recession phase is characterized by a decline in economic activity, which is reflected in a decrease in GDP, employment, and consumer spending. In Exhibit 12-1, point A represents the peak of the business cycle, which is followed by a contraction in economic activity shown by the downward slope towards point D. Therefore, the recession phase can be represented by point D, which corresponds to the lowest point of the cycle before the economy starts to recover.

Exhibit 12-1 Business Cycle