Answer: 1. Expansion - Economic activity increases, employment and income rise, and consumer and business confidence is high.
2. Peak - Economic activity reaches its maximum level, and demand for goods and services begins to slow down.
3. Contraction - Economic activity decreases, employment and income decline, and consumer and business confidence falls.
4. Trough - The lowest point of the contraction phase, characterized by low economic activity, high unemployment rates, and a decrease in GDP.
5. Recovery - Economic activity starts to pick up again, employment and income begin to increase, and consumer and business confidence improves.
Step-by-step explanation: