Answer :
Answer:
B. The economy slows down following a period of growth.
Explanation:
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The answer to the given question is-
In a business cycle, a contraction occurs when:
A. a period of economic growth reaches its highest point.
This stage in the business cycle is expansion.
In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
B. the economy slows down following a period of growth.
This stage in the business cycle is contraction or Recession .
In this stage, a situation is created of excess supply in the market. Prices tend to fall. All positive economic indicators such as income, output, wages, etc., consequently start to fall.
C. a period of economic decline reaches its lowest point.
This stage in the business cycle is Depression.
In this stage, there is a commensurate rise in unemployment. The growth in the economy continues to decline, and as this falls below the steady growth line, the stage is called a depression.
D. the economy begins to show growth in key economic indicators.
This stage in the business cycle is Peak
In this stage, the economy then reaches a peak, which is the second stage of the business cycle. The maximum limit of growth is attained.
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