What are the phases included in the business cycle?

The correct answer encompasses the phases that reflect the economic activities and trends typically observed within a business cycle. The business cycle generally includes expansion, which signifies a period of economic growth where production, employment, and consumer spending increase. Recession follows, denoting a slowdown in economic activity characterized by declining GDP and rising unemployment. Contraction is a critical part where economic activity decreases even further, potentially leading to a downturn. Finally, revival describes the gradual improvement in the economy following recessionary effects, where growth begins to resume.

Other options present terms that do not accurately represent the standard phases of the business cycle recognized in economics. For instance, while "stagnation" and "inflation" are relevant economic concepts, they do not align with the traditional cyclical phases. Similarly, terms like "profit" and "loss" focus more on specific financial outcomes rather than describing broader economic trends. Thus, the phases of a business cycle are appropriately framed in the context of expansion, recession, contraction, and revival, capturing the essence of economic fluctuations over time.