Capital MarketsQuestion 341 of 398
During the expansion (recovery) phase of the business cycle, which of the following is typically observed?
a.Rising unemployment and falling output
b.Sharp declines in consumer spending
c.Increasing GDP, rising employment, and growing consumer spending
d.Widespread business bankruptcies
Explanation
In the expansion phase of the business cycle, economic activity grows: GDP rises, employment increases, and consumer and business spending expand. The business cycle moves through expansion, peak, contraction, and trough phases over time.
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