Describe the salient features of business cycle. What are the leading indicators and the lagging indicators of business cycle?

The business cycle refers to the fluctuations in economic activity that occur over time in an economy. These cycles are characterized by alternating periods of expansion and contraction in economic output, employment, investment, and other key macroeconomic variables. The business cycle is an inherent part of a market economy and is driven by various internal and external factors. Understanding the salient features of the business cycle and the indicators that signal its phases is crucial for policymakers, businesses, and investors. 

### Salient Features of the Business Cycle

1. Expansion:
   During the expansion phase, economic activity increases. There is growth in output, employment, and business investments. Consumer confidence typically rises, leading to higher consumption and demand for goods and services. As demand grows, businesses increase production and hire more workers. This leads to a reduction in unemployment rates and a rise in wages, which further stimulates consumption and investment. The expansion phase continues until the economy reaches its peak.

2. Peak:
   The peak marks the highest point of the business cycle. At this stage, economic growth is at its maximum rate. However, the growth rate begins to slow down as the economy reaches full capacity. ________ ______ _______ _____ _____.
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