Stages of the Business Cycle Quick Check

Question

2 of 52 of 5 Items
Question
In a hypothetical economy, current inflation-adjusted economic output is rising and is expected to continue rising in the coming months. This economy is currently in the _____.(1 point)
Responses

contraction stage of the business cycle
contraction stage of the business cycle

expansion stage of the business cycle
expansion stage of the business cycle

trough stage of the business cycle
trough stage of the business cycle

peak stage of the business cycle

Answer 1

In the scenario described, where the inflation-adjusted economic output is rising and is expected to continue rising, this economy is currently in the expansion stage of the business cycle.