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University of Manitoba ping Learning Ma Sall Jump to... acroeconomics-Winterí9-ISLAM > Activities and Due Dates > Resources Hint Ch 898/1500 The graph charts the business cycle for a hypothetical economy over time. Use the terms to label all six points on the graph Answer Bank troughpeakexpansion MacBook Air
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Answer #1

The first stage or first point is expansion with increasing employment,economic Growth, and upward pressure on Prices.

The second point or stage is peak when the economy is at the highest point of business cycle producing maximum level of allowable output.

The third stage is contraction Where growth slows , employment falls and pressure on prices subsidise.

The slowing ceases at the trough and economy has hit the bottom from which the next phase of expansion will emerge again.

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