Which choice shows the stages of the business cycle in the correct order?

trough, expansion, contraction, peak

contraction, expansion, trough, peak

expansion, peak, trough, contraction

peak, contraction, trough, expansion

The correct answer is C. Expansion, peak, trough, and contraction.

Expansion is being characterized by increase of upward pressure on prices, economic growth and also increase in employment.

Another name for business cycle is trade or economic cycle.

We measure the business cycle by way of growth rate of real gross domestic produce when being put into consideration.

The answer is D. peak, contraction, trough, expansion