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Q:
A) economy moves from a trough to a peak. | B) economy moves from a peak to a trough. |
C) economy moves from a trough to a contraction. | D) economy moves from a peak to a peak. |
Answer: A) economy moves from a trough to a peak.
Explanation:
Explanation:
There are basically two important phases in a business cycle that are prosperity and depression. The other phases that are expansion, peak, trough and recovery are intermediary phases.
Expansion is a phase in which, when the economy moves from a trough to a peak. It is a period when the level of business activity surges and gross domestic product (GDP) expands until it reaches a peak.