Which of the following is NOT a phase of the business cycle?

The correct answer is C, as stability is not typically recognized as a distinct phase of the business cycle. The business cycle is a pattern of economic fluctuations that includes specific phases: expansion, peak, recession, and trough.

During an expansion, the economy grows as indicated by increasing production, employment, and sales. The peak represents the height of economic activity, where indicators are at their highest before a downturn begins. The trough is the lowest point in the business cycle, signaling the end of a recession before the economy begins to recover again.

Stability, while it may refer to a period of consistent economic performance or a lack of significant fluctuations, is not identified as a formal phase. Instead, the business cycle is characterized by the dynamic movements between the other defined phases. Thus, recognizing stability as a non-phase underscores the importance of understanding the movement inherent in economic cycles and the transitions between growth and decline.