Answer :

Final answer:

The contraction phase of the business cycle involves economic slowdown, decreased employment, and reduced pricing pressures.


Explanation:

The contraction phase of the business cycle is characterized by a slowdown in economic growth, a decline in employment rates, and a decrease in pricing pressures.

During this phase, businesses may cut back on production, leading to lower consumer spending and a rise in unemployment rates.

Examples of the contraction phase include the 2008 financial crisis when businesses reduced investments and laid off employees due to economic downturn.


Learn more about Business cycles here:

https://brainly.com/question/31642085