What Happens During the Contraction Phase of the Business Cycle

question 112

Multiple Choice

What happens during the contraction phase of the business cycle?

• A)production increases
• B)unemployment increases
• C)income increases
• D)employment increases

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Definitions:

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Convertible Notes

A financial instrument issued by companies that can be converted into equity, usually at the discretion of the holder or at specific future events.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the price paid for the use of a lender's money or credit.