The four phases of a business cycle, in correct order, are:
A) recovery, peak, trough, recession.
B) recession, peak, recovery trough.
C) recovery, peak, recession, trough.
D) peak, recovery, trough, expansion.

Question

Quizplus · Accepted Answer

The correct order of the four phases of a business cycle is: recovery, peak, recession, and trough. Recovery signifies economic improvement, peak represents the highest point of economic activity, recession indicates a decline, and trough is the lowest point before the cycle repeats.

The Four Phases of a Business Cycle, in Correct Order