The correct answer is:
I-A, II-B, III-C, IV-D
Explanation:
- Boom (I) refers to a period of high business activity with increasing income, output, and employment at a macro level.
- Recession (II) is characterized by a gradual fall in income, output, and employment with business activity in a low gear.
- Depression (III) represents an unprecedented level of underemployment and unemployment, along with a drastic fall in income, output, and employment.
- Recovery (IV) signifies a steady rise in the general level of prices, income, output, and employment, indicating an improvement in the economic conditions after a downturn.
Therefore, the correct match is I-A, II-B, III-C, IV-D.