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

The business cycle is typically characterized by four distinct phases: expansion, peak, contraction (which includes recession), and recovery. Each of these phases represents the fluctuations in economic activity over time. Expansion refers to a period of increasing economic activity, while recession marks a decline in that activity. Recovery is the phase that follows a recession, indicating a rebound in economic performance.

The term "decline" is not recognized as an official phase within the traditional framework of the business cycle. Instead, it is often used informally to describe a period of decreasing economic activity, which is already encapsulated within the contraction phase that includes recession and decline. Since "decline" does not refer to a separate, established phase on its own, it stands out as the option that does not belong to the accepted phases of the business cycle. Understanding the structure of the business cycle helps in evaluating economic conditions and making informed business decisions.