Q:
      
      
         
            
In the expansion phase of a business cycle
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: A) economy moves from a trough to a peak.         
         
Explanation: There are basically two important phases in a business cycle that are prosperity and depression. The other phases that are expansion, peak, trough and recovery are intermediary phases.
 
Expansion is a phase in which, when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak.
       
      
      
      
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