How to find economic growth

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AP Macroeconomics › How to find economic growth

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1

In order, the four phases of the business cycle are:

expansion, peak, contraction, and trough

CORRECT

expansion, contraction, peak, and trough

0

contraction, expansion, peak, and trough

0

peak, contraction, expansion, and trough

0

Explanation

The four phases of the business cycle are expansion, peak, contraction, and trough. Real GDP growth is positive during an expansion, followed by a point at which real GDP growth peaks, then begins to decline during a contraction, and finally a bottoming out at the point of the trough. Each of the other answer choices represents a distortion of this order.