Question

A shortage of a natural resource can lead to which phase in the business cycle?

A. recovery
B. expansion
C. boom
D. recession

Answer 1

The right answer for the question that is being asked and shown above is that: "B. expansion." A shortage of a natural resource can lead to which phase in the business cycle: It is the expansion stage of the business cycle.

Answer 2

I believe the answer is: D. Recession

Recession refers to the period when the market experience a general slow down in economic activity. When there is a shortage in natural resources, the producers would have less material to make their products. This would cause the economic activity in the market to slow down