Which statement describes what happens in an economy during an expansion?(1 point)

Question

Responses

Households are willing to spend saved money.
Households are willing to spend saved money. - no response given

Unemployment hits a high spot.
Unemployment hits a high spot. - incorrect

Unemployment tends to be at its lowest.
Unemployment tends to be at its lowest. - no response given

Household spending declines.
Household spending declines. - no response given
Incorrect

Unemployment hits a high spot during a trough.

Answer 1

During an expansion, the correct statement is:

Unemployment tends to be at its lowest.

In an expanding economy, businesses typically grow, leading to more hiring and, consequently, lower unemployment rates. Households are generally more willing to spend during this phase as economic confidence increases, but the most accurate statement from your options is about unemployment.