Question

In Australia, consumer spending in the past few months has seen an upward trend, and buyers are willing to spend more on premium brands. From this pattern, we can say that Australia is in the _____ stage of the business cycle.

Answer 1

Answer: prosperity stage of business cycle

Explanation: The period of growth is defined by increased production, workers, investment, revenues, revenue, consumer spending, bank loans, retail and wholesale prices, and an improvement in standard of living.

The variables begin to fall brief of the demand throughout the later phases of prosperity, as a result from which the value of components, workers and raw materials improves.

As a result, production costs are also increasing. With the rise in the prices of commodities, consumers are curtailing their discretionary spending, making demand static or falling.