The phase of the business cycle characterized by rising output is called a(n)
A) peak
B) recession
C) depression
D) trough
E) expansion

Question

Quizplus · Accepted Answer

The phase of the business cycle characterized by rising output is known as an expansion. This is the period when the economy is growing rapidly, businesses are hiring more workers, and consumer spending is increasing. During an expansion, there is an increase in economic activity, and the prices of goods and services tend to rise. This phase ends when the economy reaches its peak, after which it starts to contract.

The Phase of the Business Cycle Characterized by Rising Output