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 represents the fluctuations in economic activity over a period of time.
It is measured in terms of growth in GDP, employment, production, and investment.
Step 2: Phases.
- Prosperity: The economy grows steadily, incomes rise.
- Boom: The peak stage where growth is maximum, sometimes leading to inflation.
- Depression: A downturn where output, demand, and employment fall sharply.
- Recovery: The economy starts improving again from depression.
Step 3: Correct sequence.
Hence, the correct order of phases is Prosperity → Boom → Depression → Recovery.
Step 4: Conclusion.
Thus, the correct option is A, B, C, D.