During the expansion phase of the business cycle
A)production increases.
B)employment decreases.
C)income decreases.
D)unemployment increases.

Question

Quizplus · Accepted Answer

During the expansion phase of the business cycle, there is an increase in production as businesses have more orders and demand for their goods and services. This leads to an increase in employment and income, as more workers are needed to meet the production demands, and they are paid for their work. Unemployment decreases during the expansion phase as job opportunities become more available. Therefore, the correct answer is A, production increases.

During the Expansion Phase of the Business Cycle