There are four phases of a business cycle. There is a peak phase, a recession phase, a
trough, and expansion phase. Business cycles through all these phases some point. in go at
A peak phase occurs when the growth of the gross domestic product reaches its maximum
and unemployment rates are their lowest. After the peak phase, the business cycle then at
hits the recession phase. Employment declines and unemployment rises during this phase.
The next phase occur to is the trough. During this phase, the growth GDP rate hits its
lowest level and the unemployment rate then rises highest level. The next phase the to its is
expansion phase. During this phase there growth is in the and employment starts GDP
increasing.
I think everybody easily talk out their experiences of a recession phase can ab in today's
climate. Prices have increased but income has remained steady. During the recent
pandemic, unemployment rates skyrocketed especially the services industry due in to
businesses being closed. However, the unemployment rate in the state that I live in, Oregon,
has been steadily decreasing and turn helping in to recover from this phase of the business
cycle.It appears that are now to me we entering an expansion phase of the business cycle.
Barring any other problems like the previous pandemic looks like there will be growth it in
the near future in the raising of the federal interest rates seem to be assisting with that after
their bounce back of being solo for such a long time. I will explain the four phases of the
business enterprise cycle from how I experienced working for first full job out of it my time
High School. I worked for Home Depot in the state of Illinois during the 1990's, during that
time it expanded well and the stock split times the 90s decade. The first phase would 6 in
be they spent $150 Economic Expansion million, buying out a Canadian warehouse chain
and next year opened outlets in Mexico. During the While working there and living home at
I invested the max of 20% of paycheck and bought the stock my at a 15% discount, With
momentum, the mpany reached the co peaked phase around the end of 1996. After that
growth phase, not that much longer after that I would say the 2000's in in which Home
Depot began to experience Contraction began raising prices, which drove customers its
away competitors such Menards to its as and Ace Hardware etc. At the same time the up
and coming Big Box competitor Lowes was expanding from the east coast of the United
States the Midwest. Which effected the bottom to line of the Home Depot company and its
stock price, had compete with the market getting dividing share as it to its its of customer
base. The company did reach the trough phase when customers got over their excitement
of the new Lowes grand openings after a few years. The four phases of the business cycle
include economic expansion, peak, contraction, and trough. The expansion phase a period is
