In Which Phase of the Business Cycle Will the Economy

question 56

Multiple Choice

In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?

• A) expansion
• B) recession
• C) peak
• D) trough

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Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Gas Pump

A gas pump is a machine at a filling station that is used to transfer gasoline from a reservoir to a vehicle's fuel tank.

Reservation Price

The maximum or minimum price at which a consumer is willing to buy or sell a good or service.

Utility Function

A representation in economics that maps a set of goods and services into a numerical level of utility (satisfaction or happiness) that a consumer derives from those goods and services.