When the real output of an economy rises during a business cycle, the economy is:
A) at the peak of the business cycle.
B) at the trough of the business cycle.
C) in the recovery phase of the business cycle.
D) in the recession phase of the business cycle.

Question

Quizplus · Accepted Answer

When the real output of an economy rises, it indicates that the economy is in the recovery phase of the business cycle. This phase follows a recession and is characterized by an increase in economic activity and output.

When the Real Output of an Economy Rises During a Business