Question

Which of the following is not one of the four states included in a typical business cycle?

a. Recovery
b. Depression
c. Expansion
d. Repression

Answer 1

The term not associated with the business cycle is 'Repression.' The correct phases of a business cycle are Expansion, Peak, Recession, and Trough.

Step-by-step explanation:

The option that is not one of the four states included in a typical business cycle is d. Repression. The four phases of the business cycle are:

1. Expansion - This is when the economy is growing and real GDP increases above the long-term trend.
2. Peak - When the economy reaches its maximum output, following a period of expansion.
3. Recession - A period of economic decline, where real GDP decreases for at least 6 consecutive months.
4. Trough - The lowest point of the economy before it begins to recover. An extended recession may develop into a depression.

'Repression' is not a term commonly used to describe a phase of the business cycle, hence it is the incorrect option in this context.