List the phases of the business cycle and describe how the different phases begin and end. (9 points)?

The business cycle consists of four main phases: expansion, peak, contraction, and trough. Expansion begins when economic activity increases, marked by rising GDP, employment, and consumer spending, and ends at the peak when growth reaches its highest point. The contraction phase starts when economic activity begins to decline, leading to reduced spending and increased unemployment, ultimately culminating in a trough, which is the lowest point of the cycle before recovery begins again. Each phase is characterized by distinct economic indicators that signal transitions from one phase to another.