During the Expansion Phase of the Business Cycle

question 197

Multiple Choice

During the expansion phase of the business cycle,

• A)production increases.
• B)employment decreases.
• C)income decreases.
• D)unemployment increases.
• E)the price level falls.

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Definitions:

Market Rate

The prevailing price or interest rate at which goods, services, or securities are traded in the open market.

Discount

A reduction in the price of goods or services offered to customers, usually as a motivation to encourage sales.

Discount on Bonds Payable

This term refers to the difference between a bond's face value and its selling price when the bond is sold for less than its face value.

Contract Rate

The agreed-upon interest rate specified in a contract, particularly relevant in loans and financing agreements.