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Chapter 5 questions

For Chapter 5 Unit questions Click Price-output determination under different market forms
QUESTION
Q9) Which of the following does not occur during an expansion?

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Correct

Solution:
The answer is (d) None of the above.

An expansion is a period of economic growth characterized by rising levels of economic activity, increased production and rising employment.
During an expansion, consumer purchases of goods and services tend to increase as incomes rise, and businesses tend to experience higher profits and confidence due to increased demand.
Additionally, employment tends to increase as businesses hire more workers to meet the rising demand for goods and services.

Therefore, all of the options (a), (b), and (c) occur during an expansion.
Correct option is (d)