What are the various stages in a trade cycle?

Question

Accepted Answer

The various stages in the trade cycle life are expansion, peak, contraction, and trough.

Expansion: Period of economic growth, increased production, and rising employment.
Peak: The highest point of economic activity before a downturn.
Contraction: Economic decline, decreased production, and rising unemployment.
Trough: The lowest point of economic activity before a recovery.
Example: During the expansion phase, businesses experience increased demand and profitability.
Example: The peak phase is characterized by high consumer spending and high stock market prices.
Example: Contraction leads to reduced consumer spending, business closures, and layoffs.
Example: The trough phase is marked by low economic activity and high unemployment rates.

Accepted Answer

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Accepted Answer

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression! The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression.

What are the various stages in a trade cycle?

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