In which phase of the business cycle does a recession occur?
A) contraction
B) peak
C) recovery
D) expansion

Name: In which phase of the business cycle does a recession occur? A) contraction B) peak C) recovery D) expansion
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Question

Quizplus · Accepted Answer

A recession occurs during the contraction phase of the business cycle. This is when economic activity begins to slow down, employment decreases, and businesses cut back on investments and production. As a result, GDP falls, which can lead to a recession.

In Which Phase of the Business Cycle Does a Recession