ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -An economic cycle is the overall state of the economy as it goes through four stages in a cyclical pattern: expansion, peak, contraction, and trough. Factors such as GDP, interest rates, total employment, and consumer spending can help determine the current stage of the economic cycle.
Detailed explanation-2: -Economic indicators such as GDP, unemployment, inflation, or certain prices inform economics, companies, and investors of not only where the economy is today but perhaps where the economy may be headed.
Detailed explanation-3: -Economic indicators include measures of macroeconomic performance (gross domestic product [GDP], consumption, investment, and international trade) and stability (central government budgets, prices, the money supply, and the balance of payments).
Detailed explanation-4: -The US economy remains in the late-cycle expansion phase of the business cycle with moderate recession risk.