Question

In a business cycle, what are the features of stages of expansion?


a) Rise in national output, Rise in consumer expenditure, Bank advances grow rapidly. b) Rise in national output, Rise in capital expenditure, Bank advances grow rapidly. c) Rise in national output, Rise in consumer and capital expenditure, Bank advances grow slowly d) Rise in national output, Rise in consumer and capital expenditure, Bank advances grow rapidly. Answer OA B. С D​

Answer 1

Explanation:

An expansion is characterized by increasing employment, economic growth, and upward pressure on prices. A peak is the highest point of the business cycle, when the economy is producing at maximum allowable output, employment is at or above full employment, and inflationary pressures on prices are evident.