Which of the following best describes the phases of the business cycle?

The phases of the business cycle are foundational concepts in economics that describe the fluctuations in economic activity over time. The correct choice outlines the commonly recognized phases: prosperity, recession, depression, and recovery.

Prosperity refers to a time of economic expansion where GDP grows, employment rises, and consumer confidence is high, leading to increased spending and investment. Following this, the economy may enter a recession, characterized by a decline in economic activity, falling GDP, and rising unemployment. If the recession deepens, it can lead to a depression, which is a prolonged and severe downturn marked by a significant decrease in economic activity across the economy. Finally, the recovery phase involves a rebound in economic performance, where GDP begins to increase again, leading towards the next period of prosperity.

The other options present different terminology or combinations that do not align as closely with the standard definitions of the business cycle. For example, terms like "growth" and "turnaround" may describe parts of the economic conditions but lack the specificity and recognition of the complete cycle showcased in option B. Therefore, this option effectively captures the essential transitions and phases of economic activity, making it the best representation of the business cycle.