he figure given below represents the business cycle of an economy.
Figure 7.1

-Refer to Figure 7.1. The movement from point A to point B in the figure is most likely to be associated with _____.
A) negative inflation rates.
B) an increase in the aggregate demand for goods and services.
C) lagging economic productivity.
D) an increase in cyclical unemployment.
E) a downward trend in leading economic indicators.

Question

he figure given below represents the business cycle of an economy.
Figure 7.1
 
-Refer to Figure 7.1. The movement from point A to point B in the figure is most likely to be associated with _____.
A) negative inflation rates. 
B) an increase in the aggregate demand for goods and services. 
C) lagging economic productivity. 
D) an increase in cyclical unemployment. 
E) a downward trend in leading economic indicators.

Quizplus · Accepted Answer

The movement from point A to point B in the business cycle is typically associated with an increase in aggregate demand for goods and services, which leads to an increase in output, employment, and prices. This is often referred to as an expansion phase of the business cycle.

He Figure Given Below Represents the Business Cycle of an Economy