ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business are hiring a large number of workers.
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It is easy to find work.
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They will find jobs plentiful.
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It is more difficult to find work.
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Detailed explanation-1: -The downswing of the business cycle towards a trough is called an economic contraction. It is associated with: decrease in production/output • increase in unemployment • decrease in wages • decrease in consumer spending.
Detailed explanation-2: -The stages of the business cycle occur repeatedly over time. During the contraction phase of a business cycle, it is most likely that: inflation indicators are stable.
Detailed explanation-3: -Definition and Examples of an Economic Contraction An economic contraction happens when domestic output, such as GDP decreases. It leads to a decrease in other areas, such as individual income, production, and sales. Unemployment rates may increase.
Detailed explanation-4: -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.