What is the contractionary phase of the business cycle characterized by?
A)reduced output and increased unemployment
B)increased output and increased unemployment
C)increased output and reduced unemployment
D)reduced output and reduced unemployment

Question

Quizplus · Accepted Answer

The contractionary phase of the business cycle is characterized by a decrease in output and an increase in unemployment. This is typically a period of slow economic growth and declining business activity. Often, during this phase, employers cut back on hiring or may even lay off workers as they try to reduce costs and maintain profitability. As a result, unemployment levels rise, and consumer spending and demand for goods and services may weaken.

What Is the Contractionary Phase of the Business Cycle Characterized