Q1. What are the four phases of the … [FREE SOLUTION] | StudySmarter

Every business cycle comprises four phases. However, there is no definite time for any of the phases. The recession may be as long as the 1930’s Great Depression or maybe short-lived for only 6 months.

Similarly, the expansion is also not time-definite, although it is generally a time-taking process.

For example, after the Great Depression, the US saw expansion for 37 months from Oct 1945 to Nov 1948 with an annual GDP growth rate of 1.5%.

Also, after the global financial recession of 2008, the US was in the phase of expansion for 128 months from June 2009 to Feb 2020 with an annual GDP growth rate of 2.3%.

Considering the peak and trough, these generally last for a brief period like one to three months. For instance, the US economy witnessed the trough in March 1933 and was at its peak in February 1945.