Economics · Macroeconomics
Consider the following statements regarding the phases of business cycles: Statement I: The 'Peak' phase is characterized by the maximum utilization of resources, where the demand for labor is so high that it leads to wage-push inflation. Statement II: A 'Depression' is distinguished from a 'Recession' by its severity and duration, usually involving a fall in GDP of more than 10 percent or lasting more than three years. Statement III: During the 'Trough' phase, the economy reaches its lowest point, and the interest rates are typically at their highest as banks try to recover losses from bad loans. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1I, II and III
- 2Only II and III
- 3Only I and II✓
- 4Only I
Correct answer
Only I and II
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