what happens in each phase of the economic cycle 
in the expansionary phase the economy experiences growth over two or more consecutive quarters interest rates are typically lower employment rates rise and consumer confidence strengthens the peak phase occurs when the economy reaches its maximum productive output signaling the end of the expansion after that point employment numbers and housing starts to decline leading to a contractionary phase the lowest point in the business cycle is a trough which is characterized by higher unemployment lower availability of credit and falling prices 