Business cycle is associated with - JAMB Economics 2023 Question

The business cycle is associated with various phases of economic activity. Recession is one of the phases of the business cycle. The business cycle consists of four main phases: expansion, peak, contraction, and trough.

During a recession (contraction phase), economic activity contracts, leading to a decline in output, employment, and income. Unemployment tends to rise during a recession. Seasonal variation and inflation are also aspects associated with different phases of the business cycle.