Consider an economy in which existing capital is being used intensively,shortages in labour and goods markets are developing,and costs are rising.Which of the following terms best describes this stage of the business cycle?
A)trough
B)recovery
C)boom
D)recession
E)slump

Question

Quizplus · Accepted Answer

This stage is described as a boom. In a boom, the economy is experiencing a period of high growth, low unemployment, and high demand for goods and services. This leads to shortages in labour and goods markets, and an increase in costs due to the high demand. Additionally, existing capital is used intensively to meet the demand.

Consider an Economy in Which Existing Capital Is Being Used