| List-I | List-II |
|---|---|
| A. Boom | 1. Business activity at high level with increasing income, output and employment at macro level |
| B. Recession | 2. Gradual fall of income, output and employment with business activity in a low gear |
| C. Depression | 3. Unprecedented level of under employment, and unemployment, drastic fall in income output and employment. |
| D. Recovery | 4. Steady rise in the general level of prices, income, output and employment. |
Explanation
A is the correct match with 1: Boom refers to an economic period where growth, employment, and production are at their peak which results in a high level of business activities. B is the correct match with 2: Recession indicates a slowdown where business activity diminishes, leading to lower economic indicators, generally identified by a fall in GDP in two successive quarters. C is the correct match with 3: Depression is a severe down-turn with significant negative effects on income, employment, and output. A continued recession turns into depression. D is the correct match with 4: Recovery is a phase of improvement in economic conditions after a recession or depression which results in steady rise in general level of prices, income, output and employment.