What are four stages of the business cycle?

Answer 1

trough, expansion, peak, recession

In microeconomic terms:

Start-up/Creation:-This is the stage where the business is not generating revenue but trying to establish itself in the market and attract a stable set of investors and customers. This is the stage where the business has to invest a lot of resources in creating the basic infrastructure and then marketing and advertising itself in the market.

Growth:-This is the phase where the business owners start to establish their brand identity and generate brand loyalty within their customer base using sound marketing practices.

Maturity:-Stage three is the stage where the business reaches a certain maturity level in terms of the market. This is the business stage where the profit margins are fairly stable.

Recession/Decline:-This is the phase where the company struggles to maintain its existence in the market and trying its level best to equip itself for a quick recovery.

In macroecconomic terms, the business cycle descibes changes in national income over the long term:

The 4 phases of the cycle are:

Expansion (employment and production are increasing, and interest rates are declining or holding steady)

Prosperity

Contraction

Recession (more than two consecutives periods of declining economic growth)

The recession eventually ends when the economy starts to expand once more, and the cycle begins again.

These phases are accompanied by changes in the employment level, production level and interest rates.