In the context of the business cycle, which of the following statements is true of the period of economic contraction?
A) Consumers shift their buying patterns to more basic products.
B) The dropping prices increase the sales of luxury goods and services.
C) Businesses start producing more goods to support the economy.
D) The economic feel-good factor brings in a lot of investment.

Question

Quizplus · Accepted Answer

During an economic contraction, consumers often become more cautious with their spending and shift their buying patterns towards more essential and basic products, reducing expenditure on luxury items.

In the Context of the Business Cycle, Which of the Following