The expansionary phase of the business cycle is characterized by
A) decreasing real output and increasing unemployment.
B) decreasing real output and declining unemployment.
C) increasing real output and increasing unemployment.
D) increasing real output and declining unemployment.

Question

Quizplus · Accepted Answer

During the expansionary phase of the business cycle, there is an increase in real output and a decline in unemployment. This is because businesses are experiencing growth and are therefore in need of more workers to help with production. As a result, more people are finding employment and contributing to the economy's growth.

The Expansionary Phase of the Business Cycle Is Characterized by