Question

There are four stages in an economic recovery.



1. increased production

2. rising demand (occurs twice)

3. increased hiring



In which order do these stages occur?

2, 1, 2, 3
3, 2, 1, 2
2, 3, 1, 2
2, 1, 3, 2

Answer 1

2, 1, 3, 2

First demand rises, prompting firms to increase production; to meet higher production they hire more workers; higher employment then boosts demand further.