Peak- is the highest point of the real GDP; greatest amount of spending and lowest amount of unemployment. In this phase inflation becomes a problem
Expansion- real GDP is increasing due to an inflation of spending and a decrease in unemployment
Contraction- real GDP declines for 6 months due to a reduction in spending and increase in unemployment
Trough- is lowest point of real GDP; least amount of spending & highest unemployment
In this case, the lowest point in a business cycle is the start of a recovery for an economy. But this is not calculable until the time has passed and the economy in that time is being reviewed.
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