Question

2

Select the correct answer.
Which phase of the business cycle would be marked by an increase in productivity while employment and profits also rise?
OA
inflation
OB.
contraction
O C. expansion
OD
recession

Answer 1

C. expansion phase

Step-by-step explanation:

During the expansion phase, the amount of earning that a business obtained was massively increased from the previous quarters. This tend to led to :

- Increased amount of workers & new technologies for the company

This will make the overall production in the company become much more efficient than before.

- Increased amount of profits

Profit is counted by subs tracing your expense from your earning. So if your earning is increased, the amount of profit tend to rise along with it.

- Increase in consumer base and exposure

More earning mean that you will have more capital to be allocated for advertising. This will make your product become more well known and the amount of consumer that purchase your product regularly will also increase.