A business cycle reflects in economic activity, particularly real GDP. The stages of a business cycle are expansion, peak, contraction and trough. When a business expans there is an increase in imployment, growth within the economy or an increase in price of the good or service. The peak is the highest point in the business cycle for a company where the maximum output is being produced. Contraction is when growth starts to slow down, employment declines and pricing starts to stay stable. The trough is when the economy has hit a bottom rock and eventually the next phase of expanision and contraction will happen.