Q:
      
      
         
            
In the expansion phase of a business cycle
         
       
      
      
      
          
      
      
          Answer & Explanation
         Answer: C) economy moves from trough to peak         
         
Explanation: Business cycles are identified as having four distinct phases:
1. Expansion,
2. Peak,
3. Contraction, and
4. Trough.
Expansion is the phase of the business cycle 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. A period of expansion is also known as an economic recovery.
 
An expansion is characterized by increasing employment, economic growth, and upward pressure on prices.
       
      
      
      
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