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

question 66

Multiple Choice

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

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

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Definitions:

Real Wages

The purchasing power of wages or salaries, adjusted for inflation, reflecting the actual goods and services that can be bought.

Real Annual Wage

The annual income of an individual adjusted for inflation, providing a more accurate measure of purchasing power over time compared to nominal wages.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, which can indicate the cost of living and inflation.