Question

Phases of a typical business cycle include- LIST:
A. Prosperity
B. Boom
C. Depression
D. Recovery

• A. A, C, B, D
• B. A, B, C, D
• C. B, A, D, C
• D. C, D, A, B

Hint:

Business cycle = Prosperity → Boom → Depression → Recovery. Always moves in this cyclical pattern.

Answer 1

The Correct Option is B

Step 1: Understanding Business Cycles.
The business cycle refers to the periodic expansions and contractions in economic activity.
It is assessed by changes in GDP growth, employment levels, production output, and investment.
Step 2: Phases.
- Prosperity: Characterized by steady economic growth and rising incomes.
- Boom: The peak of economic activity, with maximum growth, potentially leading to inflation.
- Depression: A severe economic downturn marked by sharp declines in output, demand, and employment.
- Recovery: The phase where the economy begins to improve following a depression.
Step 3: Correct Sequence.
Therefore, the correct chronological order of these phases is Prosperity → Boom → Depression → Recovery.
Step 4: Conclusion.
Consequently, the correct option is A, B, C, D.