In the Expansion Phase of a Business Cycle

question 44

Multiple Choice

In the expansion phase of a business cycle,

• A)the inflation rate decreases, but productive capacity increases.
• B)the inflation rate and productive capacity decrease.
• C)employment increases, but output decreases.
• D)employment and output increase.

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Definitions:

Logical Information-Processing

A cognitive approach that describes how humans think, reason, and make decisions based on logical operations and rules.

Unconscious Drive

Deep-seated desires and motivations that influence human behavior and thought processes, often without the individual's conscious awareness.

Prefrontal Cortex

The front part of the frontal lobe in the brain, crucial for executive functions such as decision making, social behavior, and personality.

Reticular Activating System

A network of neurons located in the brainstem that plays a crucial role in regulating arousal and sleep-wake transitions.