In the study of business cycles, the point where the economy transitions from the Expansion phase to the Recession phase is known as the ________; conversely, during a recession, the phase where output and employment stop falling and begin to stabilize before a recovery is called the ________.

The business cycle is often described as moving through four distinct phases and two critical turning points:  ·        Expansion to Peak: Economic activity grows until it reaches a saturation point (Peak). ·        Peak to Recession: Following the peak, demand starts declining and the economy enters a contraction. ·        Recession to Trough: The decline continues until indicators hit their minimum level (Trough). ·        Trough to Recovery/Expansion: The economy begins to bounce back, starting the cycle anew   Peak is the highest point of the business cycle. It represents the upper turning point where the economy has reached maximum output and the output gap is usually positive. Trough is the lowest point or the bottom of the cycle. It represents the lower turning point where the recession ends and the Recovery phase begins.