Which of the following are the phases of the business cycle?

The phases of the business cycle are widely recognized as expansion, peak, contraction, and trough. This sequence describes the fluctuations in economic activity over time.

During the expansion phase, economic activity increases, characterized by rising consumer spending, business investment, and employment levels. As the economy continues to grow, it reaches a peak, which represents the highest point of economic activity before it begins to decline.

Following the peak, the economy enters the contraction phase, often referred to as a recession if it persists for a significant period. In this phase, economic activity slows down, leading to decreases in spending, investment, and overall output. Finally, the cycle reaches a trough, which is the lowest point of economic activity before growth begins again, marking the transition back into the expansion phase.

This framework is essential for understanding how economies behave over time, and it helps analysts and policymakers to make informed decisions. Other choices presented include terms that are either not traditionally used in the context of the business cycle or don't capture the complete and correct essence of these phases.