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QuizMultiple Choice

The Business Cycle — Quiz

Question 1 • Personal Finance and Economics

Which of these conditions is most indicative of recovery?

Answer
A
The economy begins to peak.
B
The economy has stopped shrinking.
C
The GDP continues to shrink.
D
The economy is growing again.

Explanation

A recovery is the phase when economic activity starts expanding again after a downturn. Thus, the most indicative condition is that the economy is growing again. Simply stopping its shrinkage may signal that the decline has ended, but growth marks recovery.

AI-written and checked against the verified answer.

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