During periods of expansion, the economy usually has
A)high levels of unemployment and output.
B)decreases in the total quantity of goods and services produced.
C)sharp troughs.
D)falling levels of unemployment and increases in employment and output.

Question

Quizplus · Accepted Answer

During periods of expansion, the economy experiences falling levels of unemployment and increases in employment and output. This is because businesses are expanding and producing more goods and services, leading to more job opportunities and decreased unemployment. A sharp trough (C) and decreases in the total quantity of goods and services produced (B) are more likely to be associated with a recession or a contraction in the economy. High levels of unemployment and output (A) do not make logical sense together, as high output typically means low unemployment and vice versa.

During Periods of Expansion, the Economy Usually Has