Among economists, the NBER is the generally accepted arbiter of business cycle turning points.

What is the best stage of the business cycle?

An expansion is characterized by increasing employment, economic growth, and upward pressure on prices. A peak is the highest point of the business cycle, when the economy is producing at maximum allowable output, employment is at or above full employment, and inflationary pressures on prices are evident.

Which point of the business cycle is the most desirable?

Business Cycle: Expansion and Peak The most desirable phase of a business cycle is expansion. In the broader economy, this phase marks steady growth in both production and profit, with a booming stock market and low unemployment. During this time, investors tend to buy as prices rise with an increase in demand.

What follows the peak of a business cycle?

Recession The recession is the stage that follows the peak phase. The demand for goods and services starts declining rapidly and steadily in this phase.

What are 4 phases of business cycle?

The four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough. During the expansion phase, the economy experiences relatively rapid growth, interest rates tend to be low, production increases, and inflationary pressures build.

What are the 4 stages of growth?

The 4 Stages of Growth: How Small Businesses Develop & EvolveThe Startup Phase.The Growth Phase.The Maturity Phase.The Renewal or Decline Phase.27 Jul 2021