Question

Determine which phase of the business cycle is associated with each event. a. Unemployment reaches its highest levels, while output reaches its lowest during (Click to select) . b. Decreasing unemployment and expanding production occurs during (Click to select) . c. The economy is at full employment and output is produced at full capacity during (Click to select) . d. Real output is declining for at least two consecutive quarters is during (Click to select) .

Answer 1

Answer and Explanation:

The explanation is as follows:

a. In the case when the unemployment reaches to the highest level and the results is in lowest so it would be due to trough

b. In the case when there is a decrease in unemployment and the production would be expand so this is due to an expansion

c. In the case when the economy is in full employment and the output would be generated in full capacity so this is due to peak

d. In the case when the real output is fallen for minimum two quarters so this is due to recession