Question

All of the following are correctly paired with their phase of the business cycle EXCEPT __________. high level of employment: peak phase slowdown of business activity: contraction phase rising unemployment: recovery phase production levels are at their worst: trough phase

Answer 1

The answer is rising unemployment: recovery phase. Rising unemployment is part of the Contraction phase. The Contraction phase is a period of economic decline or negative growth. slowdown in the pace of economic activity defined by low or stagnant growth, high unemployment, and declining prices.