ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Buyers have increased income and demand more goods and services.
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Buyers have decreased income and demand fewer goods and services.
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Sellers have increased revenues and supply more goods and services.
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Sellers have decreased revenues and supply fewer goods and services.
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Detailed explanation-1: -Economic recovery is the business cycle stage following a recession that is characterized by a sustained period of improving business activity. Normally, during an economic recovery, gross domestic product (GDP) grows, incomes rise, and unemployment falls as the economy rebounds.
Detailed explanation-2: -expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.
Detailed explanation-3: -During an expansion As consumers demand more output (goods and services), businesses produce more output to meet this increased demand, but they will eventually reach their productive capacity (their maximum level of supply). There will be more demand for their output than output available. This pulls prices up.
Detailed explanation-4: -Answers. Explanation : Cost of living increases when business cycle is expanding. Over the course of several years, the economy routinely experiences a predictable pattern of boom (expansion), followed by bust (recession), followed by recovery that begins the pattern anew.