Match List I with List II and select the correct answer using the codes given below the Lists: List I List II I. Boom A) Business activity at high level with increasing income, output and employment at macro level II. Recession B) Gradual fall of income, output and employment with business activity in a low gear III. Depression C) Unprecedented level of under employment and unemployment, drastic fall in income, output and employment IV. Recovery D) Steady rise in the general level of prices, income, output and employment

The correct answer is A because each term describes a specific phase of the economic cycle in a sequential and logical manner.

I. Boom corresponds to A: This is the peak of the business cycle where economic activity is at its highest, characterized by high production, full employment, and rising incomes.

II. Recession corresponds to B: This is the phase where economic activity begins to slow down. There is a gradual contraction in output, and employment starts to decrease as the economy shifts away from its peak.

III. Depression corresponds to C: This is a severe and prolonged downturn. It is characterized by a drastic collapse in demand, very high unemployment rates, and a significant fall in total production and income.

IV. Recovery corresponds to D: This is the turnaround phase where the economy starts growing again. It is marked by a steady improvement in employment and production as confidence returns to the market.