Describe the Stages in the Business Cycle

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The Answer is The business cycle refers to the rise and fall of economic activity over time. Although the economy will grow over the long term, economic growth is usually unstable. Business cycles or economic fluctuations vary in length and severity. Some periods of fluctuation are difficult and long; others are short and mild. Generally, the economy in the long run has an upward slope with ups and downs of varying. The five stages of the business cycle are expansionary, peak, contraction, trough, and recovery.
The expansionary phase is a period when economic activity is rising. Goods are being produced and sold, the workforce is expanding (that is, jobs are being created), demand for goods is increasing, and the price of goods is rising. Typically, this is a positive period for business. Profits are rising, cash flow is steady, and there is an opportunity for some risk taking. The expansionary period can experience a sudden economic boom or slow and steady growth.
Once the economy has reached its highest point, it can be said to have peaked. A peak marks the end of the expansionary phase and the beginning of the contraction phase. A contraction phase is characterized by declining economic activity and falling profits. During this phase, managers usually reduce costs, lay off workers, and halt any plans to invest in the company. A recession is realized when there are two or more consecutive quarter periods of negative or falling economic activity. The most recent recession occurred in 2008. A depression is an extreme recession that is characterized by longer economic periods of declining economic activity, high unemployment, and high levels of personal and commercial bankruptcies.
As of January 2014, Canada is likely in the expansionary phase experiencing slow growth. The answer to this question will depend on when this book and question is read.

Describe the Stages in the Business Cycle

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