ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In this phase of the business cycle, GDP grows and unemployment shrinks.
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Expansion
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Peak
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Contraction
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Trough
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Explanation:
Detailed explanation-1: -Expansion The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.
Detailed explanation-2: -expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.
Detailed explanation-3: -Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.
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