Which sequence lists the four phases of a typical business cycle in th…

Question

Which sequence lists the four phases of a typical business cycle in the order presented in the chapter?

Accepted Answer

A. Expansion, peak, contraction, trough

1. The chapter identifies four distinct phases of a typical business cycle.
2. They are expansion (boom/upswing), peak, contraction (recession), and trough (depression).
3. The correct option lists them in that standard order.
4. The other orderings jumble these stages.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 5 "Business Cycles", p.1_

Answer

Contraction, trough, expansion, peak

Answer

Peak, expansion, trough, contraction

Answer

Trough, contraction, peak, expansion

Which sequence lists the four phases of a typical business cycle in the order presented in the chapter?

Keep practising Unit 1A: Scarcity, Choice and Opportunity Cost