Final answer:
The first stage of a business cycle that signals an economic decline is a recession, which is the period between a peak and a trough of the economy. option (B)
Step-by-step explanation:
The first stage of a business cycle during which businesses earn less and spend less, leading to an economic decline, is known as a recession. A recession is the contraction phase of the business cycle that begins after the economy reaches a peak of activity and ends when the economy hits its trough.
The National Bureau of Economic Research (NBER) defines a recession as the period lasting from a peak to a trough within this cycle. Over the long term, a cycle of recession and expansion is observed in the U.S. economy, marked by periods of increased unemployment during recessions and decreased unemployment during expansions. Government programs like TANF, SNAP, and Medicaid usually see higher enrollment during recessions as more individuals qualify for assistance.