The four parts of the business cycle occur in the
following order :
A. Expansion, trough, peak ,recession
B. Expansion, trough,recession,peak
C. Recession, trough, peak, expansion
D. Recession, trough, expansion, peak
Answer. (d) Recession, trough, expansion, peak
Explanation: It can be understood very easily. Recession means when economic activity slows down. So when recession starts, the curve of business cycle would start going down. Now it will reach a minimum. This is called trough. Then due to some economic/other stimulus, the economy will start reviving. When economic activity starts increasing, it is called expansion. And then the expansion will reach a peak due to its maximum capacity. And then the process repeats again.
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