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:

Benefit

An advantage or profit gained from something.

Sensory Organs

Sensory organs are specialized parts of the body that receive and process sensory information, enabling perception of sight, sound, smell, taste, and touch.

High Frequency

Pertaining to or involving very short intervals of time or occurring at a rapid rate.

Automatic System

Cognitive processes that occur without conscious control or deliberation, typically fast and efficient, handling tasks such as perception, encoding, and simple decision-making.