Answer:

Introduction: Business cycle refers to the alternating periods of expansion and contraction in economic activity. It is a natural process that occurs in a market-based economy. In a business cycle, there are four phases, namely expansion, peak, contraction, and trough. Each phase of the business cycle has a different impact on the economy, and it affects the level of employment.

Involuntary Unemployment: Involuntary unemployment refers to a situation where individuals are willing and able to work but cannot find a job. It is a critical indicator of the state of the economy. Involuntary unemployment can occur due to different reasons, such as a decline in economic activity, technological changes, and changes in the structure of the labor market.

Expansion Phase: The expansion phase is the first phase of the business cycle. In this phase, there is an increase in economic activity, and there is a rise in output and employment. During the expansion phase, businesses are growing, and there is an increase in demand for goods and services. As a result, business owners require more workers to meet the growing demand. Therefore, the level of involuntary unemployment is almost zero in the expansion phase of the business cycle.

Conclusion: In conclusion, involuntary unemployment is almost zero in the expansion phase of the business cycle. During this phase, there is an increase in economic activity, and businesses are growing. As a result, there is an increase in demand for goods and services, leading to an increase in employment. Involuntary unemployment is a critical indicator of the state of the economy, and it is essential to monitor it to understand the business cycle's impact on the labor market.

Peak