Match List I with List II and select the correct answer using the codes given below the Lists: 1. List I: I. Boom, II. Recession, III. Depression, IV. Recovery 2. List II: A) Business activity at high level with increasing income, output and employment at macro level, B) Gradual fall of income, output and employment with business activity in a low gear, C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment, D) Steady rise in the general level of prices, income, output and employment Codes:

1. Match the phases of the business cycle (List I) with their descriptions (List II): I. Boom: Characterized by peak economic activity. Description (A) "Business activity at high level with increasing income, output and employment at macro level" fits this phase. II. Recession: A period of downturn. Description (B) "Gradual fall of income, output and employment with business activity in a low gear" describes recession. III. Depression: A severe and prolonged downturn. Description (C) "Unprecedented level of under employment and unemployment, drastic fall in income, output" describes depression. IV. Recovery: The phase of upturn after a trough. Description (D) "Steady rise in the general level of prices, income, output and employment" fits the recovery phase. 2. The correct matching is I-A, II-B, III-C, IV-D.