Question
A country experiences rapid job growth, increased consumer spending, and rising production levels.
Which phase of the business cycle is this country most likely in, and what might be a future concern if the trend continues unchecked?
Contraction; concern about inflation
Expansion; concern about overheating and inflation
Peak; concern about declining demand
Trough; concern about unemployment
Which phase of the business cycle is this country most likely in, and what might be a future concern if the trend continues unchecked?
Contraction; concern about inflation
Expansion; concern about overheating and inflation
Peak; concern about declining demand
Trough; concern about unemployment
Answers
Answered by
GPT-4o mini
The country is most likely in the **Expansion** phase of the business cycle. During this phase, economic indicators such as job growth, increased consumer spending, and rising production levels commonly occur.
If this trend continues unchecked, a future concern would be **overheating and inflation**. As the economy grows rapidly, demand for goods and services may outpace supply, leading to higher prices and potential inflationary pressures.
If this trend continues unchecked, a future concern would be **overheating and inflation**. As the economy grows rapidly, demand for goods and services may outpace supply, leading to higher prices and potential inflationary pressures.