10.In which of the following
phases the economy registers
an high trends in output
,income and employment ? *
O a)Recovery
O b)Depression
O c)Prosperity
O d) recession
Answers
Economic Fluctuations

There are 4 phases through which trade cycles are passed. They are prosperity, recession, depression, and recovery. In economic terms, these 4 stages are called economic fluctuations.
Prosperity
The oxygen of any business or its prosperity is profit. In a capitalist country like India when the profits increases or inflates, businessman and industrialists get the necessary incentive.
These incentives make them produce more and thereby they invest more. So, more and more investments lead to more employment. Thus, more income effectively means an increase in demand.
Browse more Topics under National Income
The concept of National Income
Measurement of National Income
The concept of Consumption, Saving, and Investment
Economic Growth
Recession
When there is excessive expansion, it leads to diseconomies to continue to large scale production. Furthermore, it also leads to higher wages, rising costs, and any more shortages.
This is termed as a recession in an economic cycle. When the demand for bank credits are rise and high, the interest rates thus tends to increase. Thus, the profits at a lower level are also diminished.
Depression
In this part of economic fluctuation, employment, income, and output begin to decline sharply. Thus, it can also be seen in recessionary trends. Furthermore, the investments fall and the enterprises are also discouraged. Thus, it leads to the pessimism that leads to deflation and depression.
Recovery
Depression period does not continue forever. There is cooling down after a period of time. Thus, in this period the improvement of trade begins. During this period, old debts are repaid, the units which are weaker are liquidated, and many enterprises are reorganized.
Thus, in this time period, the unemployment rate is also gradually decreased. Also, this is the time in which income is generated.
Answer:
recovery because those who not had given there maney at the time to the bank then employment send notice and then they recover the property