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In general, the business cycle is said to go through expansion, then the peak, followed by contraction, and then it finally bottoms out with the trough.
5 Phases of a Business Cycle (With Diagram). By Nitisha Business Cycles. Business cycles are characterized by boom in one period and collapse in the subsequent period in the economic activities of a country. These fluctuations in the economic activities are termed as phases of business cycles. Advertisements: The fluctuations are compared with ebb and flow.