When aggregate economic activity is increasing,the economy is said to be in
A)an expansion.
B)a contraction.
C)a peak.
D)a turning point.

Question

Quizplus · Accepted Answer

When aggregate economic activity is increasing, it means that the economy is growing, which suggests an expansionary phase of the business cycle. In this phase, output, employment, and income are all rising, leading to economic growth and prosperity. Therefore, option A is the best choice. Option B, C, and D can be eliminated because they refer to different phases of the business cycle, which are not relevant in this context.

When Aggregate Economic Activity Is Increasing,the Economy Is Said to Be