During the past quarter real GDP increased by 2.5 percent and the unemployment rate dropped to 5.40 percent. Economists predict that in the next quarter GDP will grow at a rate of 3.1 percent and the unemployment rate will fall to 5.38 percent. The economy is most likely:

Question

Quizplus · Accepted Answer

The increase in real GDP and the drop in unemployment rate suggest that the economy is in an expansion phase. The predicted further growth in GDP and continued decrease in unemployment rate further support this conclusion.

During the Past Quarter Real GDP Increased by 2