Which of the following is observed in an economy during the contraction phase of the business cycle?
A) Nominal GDP begins to rise
B) Real GDP remains constant
C) Real GDP falls
D) Productivity of resources increase
E) Unemployment falls

Question

Quizplus · Accepted Answer

During the contraction phase of the business cycle, there is a decrease in economic activity leading to a fall in real GDP.

Which of the Following Is Observed in an Economy During