Question

The period of the business cycle in which real GDP is increasing is called the:

• A. Expansion
• B. Peak
• C. Recession
• D. Stagflation

Hint:

The business cycle includes four main phases: expansion, peak, recession, and recovery. Knowing these phases helps understand economic trends.

Answer 1

The Correct Option is A

The period of the business cycle in which real GDP is increasing is called the "Expansion." This is the phase when the economy is growing, and economic indicators such as employment and production are improving.