In the business cycle,what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle,while the recovery phase occurs in the falling portion of the business cycle.
B) The expansion phase occurs in the falling portion of the business cycle,while the recovery phase occurs in the rising portion of the business cycle.
C) The expansion phase is the period when Real GDP increases beyond the recovery phase.
D) The expansion phase must always come before the recovery phase.

Question

Quizplus · Accepted Answer

The expansion phase is characterized by the period when Real GDP grows beyond the initial recovery from a recession, indicating a sustained period of economic growth. The recovery phase is specifically the initial period of growth following a recession, leading into the expansion phase as growth continues.

In the Business Cycle,what Is the Difference Between the Recovery