Wesley Mitchell divided the business cycle into 9 stages. Mitchell called the lowest stages of the cycle
A) the initial peak and the initial contraction.
B) the initial trough and the final trough.
C) the cycle relative and the cycle base.
D) the amplitude and the capacity.

Question

Quizplus · Accepted Answer

Wesley Mitchell called the lowest stages of the cycle the initial trough and final trough. Choice A is incorrect as the initial peak is actually the highest point of the cycle and the initial contraction refers to a decline in economic activity. Choice C and D are not related to Mitchell's stages of the business cycle.

Wesley Mitchell Divided the Business Cycle into 9 Stages