Question

multiple choice question
during which phase of the business cycle does a rise in investment spending, government spending, or exports cause an increase in gdp?

expansion
peak
contraction
trough

Explanation:

The business cycle has phases: Expansion is when economic activity (like investment, government spending, exports) increases, leading to GDP growth. Peak is the highest point before contraction. Contraction is a decline, and Trough is the lowest point before expansion. So a rise in these spending/exports causing GDP increase is Expansion.

Answer:

A. Expansion