Question

the phase of the business cycle that includes a period of consistent growth in gdp and falling unemployment is called a(n) _____.
a. expansion
b. contraction
c. peak
d. trough

Explanation:

• Expansion: Characterized by rising GDP and falling unemployment.
• Contraction: Features falling GDP and rising unemployment.
• Peak: The highest point of GDP before a contraction.
• Trough: The lowest point of GDP before an expansion.

Answer:

A. expansion