As a stage of the business cycle, recovery:
A) is a period of economic plateau.
B) is a period of retrenchment for businesses and consumers.
C) occurs when personal incomes increase at a faster rate than price levels.
D) occurs when price levels increase at a faster rate than personal incomes.
E) is the period during which the economy is moving from recession to prosperity.

Question

Quizplus · Accepted Answer

Recovery is the phase in the business cycle where the economy transitions from a state of recession towards growth and prosperity. During this period, economic activities start to pick up, leading to increases in production, employment, and consumer spending.

As a Stage of the Business Cycle, Recovery