BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Where on the business cycle is real GDP increasing and unemployment decreasing?
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Peak
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trough
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contraction
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expansion
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Explanation:
Detailed explanation-1: -During an expansion phase of the business cycle, real GDP is increasing. 1. The expansion phase is sometimes called recovery.
Detailed explanation-2: -The point at which an expansion ends and a recession begins is called the peak of the business cycle. Real GDP then falls during a period of recession.
Detailed explanation-3: -The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion. After that point, employment numbers and housing starts begin to decline, leading to a contractionary phase.
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