Which of the following sequences is in the correct order according to the business cycle? A

The answer is C.

The business cycle follows the sequence of (C) a peak, recession, trough, and then recovery. The economic cycle fluctuates between periods of expansion (growth) and contraction (economic decline). Economists use various factors such as the GDP growth, inflation rate, and among others to determine the cycle stage. When the economy expands, GDP tends to increase, and interest rates tend to be low as well as the unemployment rate. However, the economy experiences inflationary pressures. During a contraction, growth slows, employment falls, and prices tend to stagnate.