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

Question

Quizplus · Accepted Answer

During the contraction phase of the business cycle, economic activity is declining, which typically results in both employment and output falling.

During the Contraction Phase of the Business Cycle