Question

1 multiple choice 1 point
(13 o)
which of the following will most likely occur during the expansion phase of the business cycle?
real gdp rises and unemployment rises.
real gdp declines and unemployment rises.
real gdp rises and unemployment falls.
inflation rises and employment falls.

Explanation:

During the business cycle expansion phase, economic activity grows. This means the total value of goods/services produced (Real GDP) increases. As businesses expand production, they hire more workers, so unemployment decreases.

Answer:

Real GDP rises and unemployment falls.