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The highest unemployment rate is most likely to occur during which of the following phases of the business cycle?

A. contraction
B. expansion
C. peak
D. recession

User Alamoot
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2 Answers

7 votes
I believe the correct answer is Recession
User Joseph B
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The answer choice that best answers this question is D. Recession.

Recession indicates a time of loss and low numbers and profits. Contraction and expansion represent growth and new beginnings in a business which would not result in unemployment. And a businesses peak is when it’s at its largest, and best producing point. So the only option that would lend to unemployment is recession.

I hope this helps! :)
User Mahesh Malpani
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