During the Expansion Phase of the Business Cycle, Which of the Following

question 186

Multiple Choice

During the expansion phase of the business cycle, which of the following eventually increases?

• A)production
• B)employment
• C)income
• D)prices
• E)all of the above

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders.

Shareholder Wealth

The overall value for shareholders; it is often measured by the share price of a company multiplied by the number of shares outstanding.