Suppose an Economy Has Historically Grown at a Rate of 2.25

question 87

Multiple Choice

Suppose an economy has historically grown at a rate of 2.25%. The economy is growing at a rate of 3%, and the unemployment rate is low by historical standards. The economy is expected to continue to grow in the near future, but monetary authorities are concerned that inflation may increase. This economy is probably in the _____ stage of the business cycle.

• A) expansion
• B) recovery
• C) contraction
• D) trough

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Definitions:

Nearshoring

Outsourcing production or services to locations near a company’s home base or closer to customers.

Offshoring

The relocation of a business process or operation from one country to another, often to leverage lower labor costs.

American Industrial Revolution

A period of rapid industrial growth and technological innovation in the United States during the 18th and 19th centuries that transformed the economy.

Railroad System

A transportation network consisting of tracks, stations, and vehicles (such as trains) used for moving goods and people over long distances.