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•Depression /Slump - expected to find heavy unemployment,a low level of demand and capital utilization.Profits will be low as will business confidence. •Recovery - the upswing of the trade cycle is characterized by expanding production , the replacement of old machinery,rising consumers' expenditure and increasing profits •Inflation /Recession is the downswing of the trade cycle . This is where falling consumption, decreasing profits and expectations and rising stocks of unsold goods will be characterized in this stage. •Boom - Expectations are high , profits are high and prices will be rising rapidly .Investment will also be high but labor will be short supply

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