Question

Question 19 1 pts During the contraction phase of the business cycle employment and output are both at their lowest employment and output are both rising employment and output are both falling employment is falling and output is rising employment and output are both at a peak « Previous Next → to search o BI F5 F8 FO F10 F11 F12 Pres a # A & $ 4 2 % 5 B 3 6 7 B 0 W E R > T U U 6 S D F G H J к 1 2 3 X CV Β Ν. М. 0 Alt Alt Ctrl

Answer 1

The correct answer is employment and output are both falling.

Reason

The contraction phase occurs when business cycle is between the peak and trough, in other words we can say that contraction is lower than peak(highest point of business cycle) but above the trough(lowest point of business cycle).

During the contraction the whole economy is declining, due to which the employment and output both are falling.