Question

Which is a phase of the business cycle?

Responses

recovery

recovery

stagnation

stagnation

monopoly

monopoly

inflation

Answer 1

The phases of the business cycle include:

1. **Recovery** - This phase follows a recession and denotes a period of economic growth as the economy begins to pick up again.
2. **Expansion** - This phase indicates a period of growth and prosperity in the economy.
3. **Peak** - This is the highest point of economic activity before a downturn begins.
4. **Contraction** (or Recession) - This phase indicates a decline in economic activity.

Among the options provided, **"recovery"** is a correct phase of the business cycle.

**Stagnation** can describe a period where there is little or no growth but is not officially recognized as a distinct phase of the business cycle.

**Monopoly** refers to a market structure and is not a phase of the business cycle.

**Inflation** is an economic phenomenon that can occur during various phases but is also not a distinct phase of the business cycle.

So, the valid response from your options is **recovery**.