Which of the following is not part of the economic, or business cycle?

The correct answer is that a depression is not typically classified as a part of the business cycle. Instead, the business cycle is made up of four main phases: expansion, peak, contraction (which leads into a trough), and recovery, each representing different stages of economic activity.

The business cycle begins with expansion, characterized by increasing economic growth, rising employment, and higher consumer spending. As the economy grows, it reaches a peak, which is the highest point of economic activity before a decline.

Following the peak is contraction, where the economy slows down, leading to a trough, which represents the lowest point in the business cycle before recovery begins.

While a depression can occur within the context of the business cycle, it is generally considered a severe and prolonged downturn that goes beyond the normal fluctuations found in the standard cycle phases. Therefore, by identifying depression as the correct answer, it highlights that it is not a standard phase of the economic or business cycle as defined by these specific segments.