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7. The period in the business cycle from a trough up to a peak is a contraction. The rate of change in economic activity is used to assess whether an economy is expanding or contracting. 8.
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7.False, a contraction occurs after a peak and before it becomes a trough.

8.True, the rate of change of economic activity is used to assess whether an economy is expanding or contracting. To assess if economy is contracting or expanding there are many indicators like GDP, Unemployment rate etc.., which are dependent on change in economic activity.

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