Expansion/Peak refers to which phase of the economic cycle?

Expansion/Peak refers to which phase of the economic cycle?

• A. A phase in the economy when production and CPI are high and unemployment is low.
• B. A phase of rising unemployment and falling production
• C. A phase where prices collapse
• D. A phase of excessive government spending

Answer: (A)

Expansion/Peak is the phase when the economy is thriving: production is high, prices are rising, and unemployment is low. This combination—strong output, higher CPI, and low joblessness—best matches the description provided. The other options describe a downturn with joblessness rising and output falling, deflation where prices drop, or a policy action rather than a cycle phase.

Expansion/Peak is the phase when the economy is thriving: production is high, prices are rising, and unemployment is low. This combination—strong output, higher CPI, and low joblessness—best matches the description provided. The other options describe a downturn with joblessness rising and output falling, deflation where prices drop, or a policy action rather than a cycle phase.