Question on: JAMB Economics - 2023
Business cycle is associated with
A
Recession
B
Unemployment
C
Seasonal variation
D
Inflation
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Correct Option: A
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.
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