1 in the expansion phase there is increase in economic activity such as production employment output wages profits demand and supply of products and sales2 the economy then reaches peak where the maximum limit of growth is attained and economic indicators do not grow further this stage marks the reversal in trend of economic growth3 in the recession phase the demand for goods and services starts declining rapidly prices tend to fall and economic indicators such as income output and wages start to decline4 the growth in the economy continues to decline and there is rise of unemployment in the depression phase5 demand and supply of goods and services and their prices reach their lowest levels in the trough phase there is extensive depletion of national income and expenditure6 in the recovery phase there is a turnaround from the bottom and the economy starts recovering from the negative growth rate demand and supply pick up and there is a positive attitude towards investment and employmentthe content on this page is courtesy centre for investment education and learning ciel contributions by girija gadre arti bhargava and labdhi mehta