Question

A business cycle that experiences a period of contraction for two quarters in a row supports which conclusion about the condition of the economy?
A. the economy is likely to hit its trough soon
B. The economy is likely to experience rapid expansion
C. The economy is likely to recover from a depression
D. The economy is likely to suffer from a recession

Answer 1

Answer: The economy is likely to suffer from a recession

Explanation:

Contraction simply means when a particular economy is in decline. When the real gross domestic product for a certain economy reduces for two quarters, then it is said that recession is taking place in such economy.

When a particular economy plunges into contraction, this will likely lead to more unemployment in the economy. When there's recession, there's a reduction in the level of activity for that economy and there's also the reduction in the demand for goods and services.

Answer 2

Answer: the economy is likely to suffer from a recession

Explanation:

A P E X