2
QuizMultiple Choice

The Business Cycle — Quiz

Question 2 • Personal Finance and Economics

There are four stages in an economic recovery. increased production rising demand (occurs twice) increased hiring In which order do these stages occur?

Answer
A
2, 1, 2, 3
B
3, 2, 1, 2
C
2, 3, 1, 2
D
2, 1, 3, 2

Explanation

A recovery typically begins with rising demand, which encourages businesses to increase production. As production expands, businesses hire more workers; the added jobs and income can then lead to further rising demand. Using the listed stages—1 for increased production, 2 for rising demand, and 3 for increased hiring—the order is 2, 1, 3, 2, which is choice D.

AI-written and checked against the verified answer.

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