Real GDP The Business Cycle Exercise 1 Using the graph below, identify the different stages of the business cycle. Assume that A, B, and C represent consecutive years. B Time a. A time period when the economy is growing toward full employment is known as an expansion It is depicted in the graph as (Click to select) b. A time period characterized by full or near-full employment is known as an expansion It is depicted in the graph as [(Click to select) w c. A time period with two consecutive quarters of declining output is known as [an expansion It is depicted in the graph as (Click to select)