Which of the following observations concerning phases of a business cycle is incorrect?
A)The maximum amount of unemployment occurs exactly at the trough.
B)The expansion phase is measured from the trough to the peak.
C)The trough is the point in time when output stops declining.
D)The contraction phase is also called recession.

Question

Which of the following observations concerning phases of a business cycle is incorrect?
A)​The maximum amount of unemployment occurs exactly at the trough.
B)​The expansion phase is measured from the trough to the peak.
C)​The trough is the point in time when output stops declining.
D)​The contraction phase is also called recession.

Quizplus · Accepted Answer

The maximum amount of unemployment typically occurs after the trough, during the early stages of the expansion phase.

Which of the Following Observations Concerning Phases of a Business