During a business cycle expansion, output grows until it reaches
A)the physical maximum of production.
B)the level at which inflation begins.
C)a trough.
D)a peak.

Question

Quizplus · Accepted Answer

During a business cycle expansion, output continues to grow until it reaches a peak. At this point, the economy is operating at or near full capacity and often experiences rising inflation as a result of increased demand for goods and services.

During a Business Cycle Expansion, Output Grows Until It Reaches