Which of the Following Would Most Likely Occur During the Expansionary

question 225

Multiple Choice

Which of the following would most likely occur during the expansionary phase of the business cycle?

• A) demand-pull inflation
• B) cost-push inflation
• C) structural inflation
• D) frictional inflation

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Definitions:

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another, typically measured by the gross domestic product (GDP).

Import-substitution Strategies

Economic policies and practices aimed at replacing foreign imports with domestic production.

Economists

Professionals specialized in the study of economics, focusing on the production, distribution, and consumption of goods and services.

Economic Development

The process of improving economic well-being and quality of life through economic growth, creation of jobs, and the implementation of social and technological advancements.