In the business cycle,what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle.
B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle.
C) The expansion phase is the period when Real GDP increases beyond the recovery phase.
D) The expansion phase must always preceed the recovery phase.

Question

Quizplus · Accepted Answer

The expansion phase is when the economy grows beyond the previous peak after recovering from a recession, while the recovery phase is when the economy starts to grow again after a contraction.

In the Business Cycle,what Is the Difference Between the Recovery