the ____ phase in the business cycle is a period when the level of business activity declines and gdp falls.
What is the phase in the business cycle when the level of business activity declines and GDP falls?
Answer:
LectureNotes mentioned the correct phase in the business cycle. The phase in question is the contraction phase. During the contraction phase, the level of business activity decreases, leading to a decline in GDP. This phase is characterized by reduced consumer spending, lower investments, rising unemployment rates, and a general slowdown in economic growth. Central banks and governments employ various monetary and fiscal policies during this phase to stimulate economic activity and steer the economy towards recovery.