Question

The range of economic activity from the beginning trough of an expansion to the peak of the expansion is called

Multiple Choice

• the recession phase.

• the expansion phase.

• the periodicity.

• the contraction phase.

• None of the options are correct.

Answer 1

Since business cycle is referred as an economic model which describes fluctuation in economic activity. The economic activities includes production of goods and services.

The stages in the business cycle are expansion, peak, recession or contraction, depression, trough, and recovery.

It means that a business cycle goes through its phases in the sequence of Recession, trough, expansion and Peak.

The range of economic activity from the beginning trough of an expansion to the peak of the expansion is called the expansion phase.

Hence option second is the correct answer.