Question

During an expansionary phase of the business cycle, which of the following most likely occur(s)?

a.Fewer goods and services are produced.
b.Fewer tax revenues are remitted.
c.Fewer people are employed.
d.Fewer people are unemployed.

Answer 1

The correct option is D) Fewer people are unemployed

Step-by-step explanation:

In business, an expansionary phase can be described as the business cycle where the economy moves from trough to peak. The GDP grows during this phase.

The expansionary phase of the business cycle can be characterized by:

• A raised output
• falling amounts of unemployment.
• enhanced business and customer confidence.
• higher investment

An expansionary phase can remain from 5 to 10 years for a business. But is not properly handled can only last for a year.