During the expansion phase of a business cycle
A) employment and output are both at a peak
B) employment and output are both rising
C) employment is falling and output is rising
D) unemployment is rising and output is falling
E) employment is rising and output is falling

Question

Quizplus · Accepted Answer

During the expansion phase of a business cycle, both employment and output are rising. This means that businesses are experiencing growth, creating more jobs and producing more goods and services. This is often accompanied by a time of low inflation and increased consumer confidence.

During the Expansion Phase of a Business Cycle