The beginning of an economic contraction coincides with a(n)________ while during an economic expansion ________

Question

Quizplus · Accepted Answer

During an economic contraction, businesses tend to decrease their investments due to declining demand and decreasing profits. On the other hand, during an economic expansion, businesses tend to increase their investments to meet the increasing demand and take advantage of the growing economy. However, there is no direct relationship between government spending and economic contraction/expansion.

The Beginning of an Economic Contraction Coincides with A(n)________ While