What are the phases of a business cycle? Which of the following statements accurately describe the phases of a business cycle? Check all that apply. A contraction phase is when an economy exhibits decreasing levels of production and consumption. A period of expansion is when an economy exhibits decreasing levels of production and spending. A trough occurs at the end of the contraction phase and the beginning of the expansion phase A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase. A contraction period is characterized by the following attributes: businesses that are operating lower productive capacity, stock market, and expectations of unemployment, low retail sales, prices and interest rates, a declining business profits. Contraction periods tend to end with a ,while expansion periods tend to end with a How do the phases of the business cycle affect your personal financial planning activities? Think about the characteristics of the expansion and contraction periods in a business cycle. How might the characteristics of these two phases affect your efforts to manage your financial resources? Check all that apply During the early stage of an economic expansion, finding a job generally tends to be easier, because manufacturers and retailers generate relatively higher levels of production and output. During a period of economic expansion, it is generally more difficult to make large-ticket purchases due to the greater likelihood of being unemployed