what stage of the business cycle immediately follows the peak

The average woman follows a 28 day cycle but some woman do have longer cycle's. Answer to What stage of the business cycle immediately follows the trough?a. In peak phase, the economic factors, such as production, profit, sales, and employment, are higher, but do not increase further. This phase is known as peak phase.

This phase is known as peak phase. The economy eventually reaches the trough. The maximum limit of growth is attained. The economy develops a positive attitude towards investment and employment and production starts increasing.Employment begins to rise and, due to accumulated cash balances with the bankers, lending also shows positive signals. e.none of these are true. As this process gains momentum an economy again enters into the phase of expansion. A series of expansion and contraction in economic activityLearn 100% online from anywhere in the world. In this phase, there is a turnaround from the trough and the economy starts recovering from the negative growth rate. There is further decline until the prices of factors, as well as the demand and supply of goods and services, reach their lowest point.

As discussed earlier, during recession the rate at which the price of factor of production falls is greater than the rate of reduction in the prices of final products.Therefore producers are always able to earn a certain amount of profit, which increases at trough stage. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.

This means that recovery is the stage that follows the trough in the economy and that means option 'b' is the correct answer. As a result, the demand for consumer products increases.In addition in recovery phase, bankers start utilizing their accumulated cash balances by declining the lending rate and increasing investment in various securities and bonds. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. This condition firstly experienced by few industries and slowly spread to all industries.This situation is firstly considered as a small fluctuation in the market, but as the problem exists for a longer duration, producers start noticing it. b.there are four phases: peak, recession, trough and recovery. Business Cycle is defined as a series of repetitive upward and downward growth cycles in the pace of the company or economic activities of a country and guides the policymakers in the decision-making process.

Prices tend to fall. Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction. Phases of the Business Cycle. Consumers tend to restructure their budgets at this point.The recession is the stage that follows the peak phase. When the decline in the demand of products becomes rapid and steady, the recession phase takes place.In recession phase, all the economic factors, such as production, prices, saving and investment, starts decreasing. The different phases of a business cycle (as shown in Figure-2) are explained below.

In other words, peak phase refers to the phase in which the increase in growth rate of business cycle achieves its maximum limit.

In addition, in trough phase, there is a rapid decline in national income and expenditure.In this phase, it becomes difficult for debtors to pay off their debts. Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough. Such changes represent different phases of business cycles.There are basically two important phases in a business cycle that are prosperity and depression.

Consequently, banks face the situation of increase in their cash balances.Apart from this, the level of economic output of a country becomes low and unemployment becomes high.

A) Prices Of Products Are Low, Unemployment Is At An All-time High, And Production Is Low.

In this phase, depreciated capital is replaced by producers, leading to new investments in the production process.Recovery continues until the economy returns to steady growth levels. The business cycle moves about the line. Just following a different cycle. As a result, investment and employment by organizations increases.

As a result, the demand for products, such as jewellery, homes, automobiles, refrigerators and other durables, starts falling.As discussed earlier, in peak phase, there is a gradual decrease in the demand of various products due to increase in the prices of input. Apart from this, in recovery phase, some of the depreciated capital goods are replaced by producers and some are maintained by them.

During this period, economic growth weakens, it is what economists call a recession. Enroll today!The GDP Formula consists of consumption, government spending, investments, and net exports. The extreme points are the peak and the trough.On the contrary, economists like Finn E. Kydland and Edward C. Prescott, who are associated with the Chicago School of Economics, challenge the Keynesian theories.

Recession.d.

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what stage of the business cycle immediately follows the peak