Question

When the economy moves from a trough to a peak, it is said to be in a state of ______________.

A. Contraction
B. Recession
C. Expansion
D. Stagnation

Answer 1

During an economic expansion, the economy is growing and experiencing positive growth. This period is characterized by increased employment and overall economic prosperity.

Step-by-step explanation:

During an economic expansion, also known as a peak phase in the business cycle, the economy is growing and experiencing positive growth. This period is characterized by increased employment, higher consumer spending, and overall economic prosperity. For example, during an expansion, programs like TANF, SNAP, and Medicaid may experience decreased demand as more individuals find employment and have less reliance on government assistance.