Question

All of the following are correctly paired with their phase of the business cycle EXCEPT __________.

A.
high level of employment: peak phase
B.
slowdown of business activity: contraction phase
C.
rising unemployment: recovery phase
D.
production levels are at their worst: trough phase

Answer 1

All of the following are correctly paired with their phase of the business cycle EXCEPT rising unemployment: recovery phase. C.

Answer 2

The correct answer is C) rising unemployment: recovery phase.

All of the following are correctly paired with their phase of the business cycle EXCEPT "rising unemployment: recovery phase.

In financial terms, a business cycle is the different states of fluctuation in the Gross Domestic Product GDP) as a growing process that has its peak and its downturn. It is a way that economic activity can be explained through its expansion and contraction. Some authors consider that there are four stages, others, six. But the classical business cycle comprises an expansion period, a peak, a recession, a depression, trough, and recovery.