Business cycle

What are the four phases of a business cycle?

1.Peak
2.Recession
3.Trough
4.Recovery

What is a peak?
The phase of the business cycle during which real GDP reaches its maximum after rising during a recovery.

What is a recession?
A downturn in the business cycle during which real GDP declines.

What is a trough?
The phase of the business cycle in which real GDP reaches its minimum after falling during a recession.

What is a recovery?
An upturn in the business cycle during which real GDP rises.