What are the four phases of the business cycle?

Macroeconomics is the economics branch which examines the factors affecting the entire economy. Different schools of thought with time have encouraged various theories such as Keynesian theory, classical theory, etc. Real GDP per capita, which is a strong individual growth indicator, is real GDP divided by the country's total population.

The business cycle consists of alternate expansion and recession phases. The following are the four phases of business cycles:

* Expansion: the economic growth phase and high GDP growth.

* Peak: This is the highest point of GDP, and then begins to fall.

* Recession: the phase of low economic growth and negative GDP growth.

* Trough: this is the lowest point of GDP and then it increases.