Which of the following is a characteristic of the prosperity phase of the business cycle? stagnant prices high levels of production ambivalence about the economy reduced incomes

What is meant by the prosperity phase is where the economy of a country is in good condition. High economic growth rate and low unemployment rate.

The business cycle is also called the economic cycle or the trade cycle. In a simple business, the cycle can be interpreted as a series of economic conditions that occur repeatedly, constant, and regularly in a certain period.

The business cycle can also be understood as a type of fluctuation in aggregate economic activity from various countries, which consists of expansion, recession, contraction, and economic revival.

The business cycle generally consists of four phases or stages, namely:

Prosperity

This prosperity phase represents the peak of the cycle, where the economy of a country is in good condition. High economic growth rate and low unemployment rate. At this stage, people's purchasing power increases along with the increase in people's income. In this regard, at this stage consumers generally want to utilize their money to get the highest level of satisfaction with goods and services.

Deterioration

From the stage of prosperity or the peak of the cycle, economic conditions move to the stage of decline marked by economic recession. A country's economy is said to be in a recessionary stage if the value of Gross Domestic Product decreases or the value of real economic growth is negative for two quarters or more in a one-year period.

Trough the economy

Trench is an indentation in a soil-filled with water. At sea, the existence of this trough is dangerous because it is able to trap where if there are people who are trapped in it will be difficult to get out so that the risk of being dragged into the sea deeper and even lost their lives. As illustrated, troughs in economics also have harmful meanings. Trough the economy can be interpreted as a condition of a more severe recession and lead to economic depression.

Recovery

In the recovery phase, the economic stretch can be felt again. Gradually, slowly but surely, the level of public demand for goods and services began to rise. This, of course, triggers producers to increase production volumes. As production volume increases, the unemployment rate starts to be overcome.

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Class: Middle School

Subject: Social Studies

Keywords: Business, Cycle, Economic

High levels of production is a characteristic that signifies the prosperity phase of the business.

Explanation:

This is because during the start of a business, it has got a low customer base, thereby the production also shall be low.

During the prosperity phase, customers shall be many, thereby the demand of the products shall be high leading to more product production.

Reduced incomes are a sign of a depreciating economy.

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