Which of the following is NOT one of the five phases of the business cycle?

The phases of the business cycle typically include expansion, peak, contraction, trough, and recovery. The correct answer, emphasizing that it is not one of these recognized phases, is vital to understanding the cyclical nature of economic activity.

When analyzing the answer options, "Initial recovery" would fall under the recovery phase, where the economy starts to pick up after a downturn. "Peak" is indeed a well-acknowledged stage where the economy is at its highest point before a contraction begins. "Late upswing" refers to a period where economic growth is still occurring but may soon transition toward a peak phase. On the other hand, "Slowdown" is more of a generalized term that can describe a reduction in growth rate but is not one of the formally recognized business cycle phases.

Thus, identifying which terms fit within the framework of the business cycle is crucial in distinguishing formal terminology from general descriptors. Understanding these phases helps investors, policymakers, and analysts anticipate changes in economic activity and make informed decisions.