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0u dilu 343 Path , Parents Challenges DAKI 2.pdf anuary 23 1. Which of the following characterizes the expansion phase in the business cycle? a. Prices of goods fall because of increased supply Credit is tightened because the dollar can buy more Production increases Businesses do not attract capital because alternative investments are more attractive b. c. d. I need the answer plus the explanation for it
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Solution is production increases.

The reason is due to an expansion phase of cycle the credit supply is enough and firms thereby tend to produce more. Also since higher credit supply is available firms tend to pay higher wages and hence aggregate demand rises causing the production to rise simultaneously .

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