in which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?

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3 May, 18:29

in which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?

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Answers (1)

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Selina Vincent · Answer 1

The correct answer is expansion.

Explanation:

The expansion is a phase of the economic cycle, which consists in the transition from a depression to a peak, that is, there is an extreme growth in economic activity, while the Gross Domestic Product expands.

The economic cycle consists of two phases, one of contraction and another of economic expansion, when it goes from a depression to an expansion, it is said that it is recovering.

The average duration of an economic expansion is three to four years, but they have lasted less than one year, and others up to ten years.

When economic growth occurs, it is due to GDP growth, that is, the purchasing power per person of a country increases considerably.

The reasons for this growth to arise may be due to technological progress, investment, capital accumulation, opening to new markets, etc.

Currently the fastest growing countries are those in Western Europe, and some colonies in the US, Canada and Australia, we can also say that the continent of Asia has grown more than Africa in the last century.