Question

5.
There are four phases of a business cycle. Identify the correct sequence of the
occurrence of these phases
(a) Recovery, Recession, Expansion, Depression
(b) Recovery, Expansion, Depression, Recession
(c) Depression, Expansion, Recession, Recovery
(d) Recovery, Expansion, Recession, Depression
P.T.O.
M-08 (SET-B)
(3)​

Answer 1

Answer

EXPANSION, PEAK, RECESSION, DEPRESSION, TROUGH, RECOVERY.

EXPLANATION

these are the phases of Business cycle.

Answer 2

Option d, is correct sequence.

There are four phases of a business cycle which are Recovery, Expansion, Recession, Depression.

Recovery - As the name suggests it is recovery period of economy after sustained downturn through government policies, increased money supply, increased lending etc.

Expansion- It is opposite of depression. When economy faces upturn. There is increase in employment, production and spending levels.

Recession - contraction in economy where there is a significant fall in spending.

Depression - when economy faces downturn  for a long period of time. Significant decline in GDP.