In the Business Cycle, What Is the Term for a Period

question 49

Multiple Choice

In the business cycle, what is the term for a period of rising economic growth and increasing employment?

• A) peak
• B) recovery
• C) contraction
• D) disinflation

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the optimal level of supply and demand is not achieved.

Supply Elasticities

Measures the responsiveness of the quantity supplied of a good to a change in its price.

Excise Tax

A tax imposed on specific goods, services, or transactions, often used to discourage consumption of certain products or to raise government revenue.

Black Markets

Illegal trade markets that arise when goods or services are traded at prices or in quantities that violate government regulations or laws.