Question

In the last three quarters of the year, a country's GDP (gross domestic product) level is measured at $12 trillion, $12.5 trillion, and $13.2 trillion. Based on this data, the economy is in the _____ phase of the business cycle.

Answer 1

EXPANSION

Step-by-step explanation:

Expansion Phase

The expansion phase is the first stage in a business cycle. It is the period in the business cycle where there are increases in GDP, employment, incomes, production and sales. At this stage, investments is booming and there's a steady flow of money supply. When GDP grows for two or more consecutive quarters, it serves as a good indicator for expansion, moving from trough to peak. It is also known as ECONOMIC RECOVERY.