Question

In a hypothetical economy, current inflation-adjusted economic output is rising and is expected to continue rising in the coming months. This economy is currently in the___
peak stage of the business cycle

trough stage of the business cycle

contraction stage of the business cycle

expansion stage of the business cycle

Answer 1

The economic output is rising and is expected to continue rising in the coming months, the economy is currently in the expansion stage of the business cycle.

The business cycle consists of the following stages which changes with time;

• Expansion stage: continuous rise in economic output.
• Peak stage: maximum economic output.
• Contraction (recession) stage: a continuous decline in economic output.
• Trough stage: the point of lowest economic output.

Thus, when the economic output is rising and is expected to continue rising in the coming months, the economy is currently in the expansion stage of the business cycle.

Learn more about business cycle here: brainly.com/question/904465