4. Explain the different phases along with their reasons of Economics/Business cycle by using the below diagram. Marks= 07 Real GDP 0 Positive output gap (inflation) Recession Recovery (growth) Potential output Peak (boom) Actual output (real GDP) Longterm trend Trough Negative output gap (deflation) CONTRACTION EXPANSION Time
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The diagram provided shows the different phases of the economic/business cycle. Show more…
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