Question
Question \#17 of 60 Which of the following stages is at the end of the normal business cycle? A) Recession B) Depression C) Revival D) Expansion
Ask by Frazier Rogers. in the United States
Feb 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The normal business cycle ends with Expansion.
Solution
The normal business cycle typically consists of these phases:
1. Expansion – where economic activity increases.
2. Peak – the point at which growth reaches its maximum.
3. Contraction (or Recession) – when economic activity declines.
4. Trough – the bottom of the cycle before growth begins again.
Since the normal cycle ends with the economy reaching its peak, and the phase leading up to that peak is the Expansion phase, the correct answer is:
D) Expansion.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution Beyond the Answer
At the end of the normal business cycle, you'll find the recession stage. This is when economic activity declines, consumers spend less, and businesses might cut back on production and hiring. It's like the economy hitting the brakes after a long drive of growth and prosperity, signaling a time of readjustment. However, don’t fret! A recession is often followed by a revival or recovery phase, where economic growth resumes again. It’s a natural ebb and flow of the economy, sometimes bringing about necessary changes and innovations as businesses adapt to new realities. So, think of it as the economy’s way of stretching out and getting ready for the next big adventure!
