Economics · Business Cycles
Analyze these statements concerning the phases of a Business Cycle: Statement I: The 'Trough' is the lowest point of a business cycle where economic activity stops declining and begins to stabilize before recovery. Statement II: During the 'Boom' phase, the actual GDP of the country exceeds its potential GDP, often leading to inflationary pressures. Statement III: 'Recovery' is always a rapid process that brings the economy back to its previous peak within one fiscal year. Statement IV: The 'Peak' marks the end of the expansion phase and the beginning of the recessionary phase. Which of the following is accurate?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement I, II, and IV are correct; Statement III is incorrect.✓
- 2Statement II and III are correct; Statement I and IV are incorrect.
- 3Only Statement I and II are correct.
- 4All statements are correct.
Correct answer
Statement I, II, and IV are correct; Statement III is incorrect.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Business Cycles MCQs →Want more practice questions on Business Cycles?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Business Cycles