Join ExamsbookAnswer : 3. "economy moves from trough to peak"
In the expansion phase of a business cycle5
Q: In the expansion phase of a business cycle
- 1economy moves from peak to troughfalse
- 2economy moves from contraction to peakfalse
- 3economy moves from trough to peaktrue
- 4economy moves from trough to troughfalse
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Answer : 3. "economy moves from trough to peak"
Explanation :
Answer: C) economy moves from trough to peak Explanation: Business cycles are identified as having four distinct phases: 1. Expansion, 2. Peak, 3. Contraction, and 4. Trough. Expansion is the phase of the business cycle when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak. A period of expansion is also known as an economic recovery. An expansion is characterized by increasing employment, economic growth, and upward pressure on prices.