Final answer:
The correct pattern of a typical real estate cycle, reflecting the general business cycle, is recession, trough, expansion, and peak. This sequence accounts for the downturn and recovery phases of economic activity.
Step-by-step explanation:
The Pattern of a Typical Real Estate Cycle
The typical pattern of a real estate cycle mirrors the general business cycle, which is characterized by four phases: expansion, peak, recession, and trough. This cycle describes the fluctuations experienced in the economy and by extension, the real estate market. At the onset of a cycle, the economy starts to grow, leading to the expansion phase, where there's an increase in economic activities, property demand, and prices. Following expansion, the economy reaches its peak, the highest point of economic activity. After peaking, the economy enters the recession phase, marked by a decrease in economic activities, slowing down property demand and price growth. Finally, the economy hits its trough, the lowest point, signaling the end of the recession and the potential for recovery. The correct answer to the student's question is (b) Recession, trough, expansion, peak, as this sequence properly follows the business cycle from a downturn to a point of recovery and growth.