Question

Which of the events is likely to occur when the business cycle is in a period of recession (contraction)?

Answer 1

The events exists likely to happen when the business cycle is in a period of recession (contraction) are,

• An increase in unemployment
• An increase in economic growth

What is Business cycle?

Economic activity goes through periods of boom and then contraction during business cycles. Both the general welfare of society and the welfare of private entities are affected by these developments. Business cycles are a sort of variation that may be found in the overall economic activity of a country. A business cycle is made up of expansions that occur roughly at the same time in many different economic activities, followed by contractions that are similarly widespread (recessions).

The two key stages of a business cycle are basically prosperity and depression. The expansion, peak, trough, and recovery stages are also intermediate phases.

Hence, The events exists likely to happen when the business cycle is in a period of recession (contraction) are,

• An increase in unemployment
• An increase in economic growth

To learn more about Business cycle refer to:

brainly.com/question/26086110

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