Question

Consider the following stages and their description with respect to business cycle:

1 Boom- Economy experiences strong GDP growth.
2.Recession -Reduction in growth rate with growth rate being positive.
3.Recovery- Positive growth rate.

• A. 1 and 2
• B. 1 and 3
• C. 2 and 3
• D. None of the Above

Answer 1

The correct option is B 1 and 3

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Boom- Phase where the GDP is growing.
Slowdown- The GDP growth rate is slowing but not negative.
Recession- The GDP growth rate is negative.
Recovery- The GDP growth rate has turned positive after a negative growth period.