An economy has historically grown at a rate of 1.25%.Economic activity decreased every quarter over the past year,but the decline stopped this quarter.The economy is expected to grow at a rate of 1.4% in the near future,and the monetary authorities are concerned that inflation may increase.This economy is probably in the _____________ stage of the business cycle.

Question

Quizplus · Accepted Answer

The economy is expected to grow at a rate of 1.4% in the near future, and the monetary authorities are concerned that inflation may increase. This suggests that the economy is probably in the trough stage of the business cycle, as it is transitioning from a period of contraction to a period of expansion.

An Economy Has Historically Grown at a Rate of 1