Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 10: Problem 14

The second part of the expansion phase of the cycle is _____. a) recovery b) prosperity c) recession d) depression

Short Answer

Expert verified
The second part of the expansion phase of the cycle is \(b) \: prosperity\).

Step by step solution

01

Understand the Business Cycle

A business cycle consists of four phases, which are experienced by an economy over a period. The four phases are: 1. Expansion 2. Peak 3. Contraction 4. Trough The expansion phase is when the economy is growing, and it has two parts. To answer this question, we must determine which option corresponds to the second part of the expansion phase.
02

Process of Elimination

We will go through each answer option and eliminate the ones that do not fit the description of the second part of the expansion phase. a) Recovery - Recovery is considered the first part of the expansion phase, where the economy starts to grow after a contraction. b) Prosperity - Prosperity is a state where the economy is growing at a healthy rate, and it indicates the second part of the expansion phase. c) Recession - Recession is part of the contraction phase, where the economy is experiencing negative growth. d) Depression - Depression is an extreme form of contraction and typically lasts longer than a recession. It's not part of the expansion phase.
03

Choose the Correct Answer

With the process of elimination, we have determined that the second part of the expansion phase of the cycle is: b) prosperity

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Disinflation generally occurs during _____. a) recessions b) economic booms c) periods of hyperinflation d) times of deflation

Which one of the following best describes a recession? (LO1,2) a) A slowing of real GDP growth b) A rise in unemployment accompanied by a decline in total employment c) A decline in real GDP for two consecutive quarters d) A decline in GDP for two consecutive quarters

During the mid- \(1980 \mathrm{~s}\), both Bolivia and Nicaragua experienced _____. a) creeping inflation b) hyperinflation c) disinflation d) deflation

The rate of job creation during the administration of George W. Bush has been _____. a) relatively low b) relatively high c) about average

The period of greatest price stability was _____. a) \(1950-56\) b) \(1958-64\) c) \(1968-76\) d) \(1976-82\)
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free