Which of the following observations concerning phases of a business cycle is incorrect?
a. The maximum amount of unemployment occurs exactly at the trough.
b. The expansion phase is measured from the trough to the peak.
c. The trough is the point in time when output stops declining.
d. The contraction phase is also called recession.
Question 2
In the expansion phase of the business cycle
a. output is rising.
b. unemployment is falling.
c. consumer and business confidence is high.
d. all of the above are true.
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