**During upswing, the unemployment rate falls and output rises.**

**Unemployment Rate during Upswing:**
During an upswing or expansion phase of the business cycle, the overall economic conditions improve, leading to increased economic activity and growth. As businesses expand their operations and demand for goods and services rises, they tend to hire more workers to meet the growing demand. This results in a decrease in the unemployment rate.

1. **Increased Economic Activity:** During an upswing, there is an increase in consumer spending, business investments, and government expenditure. This leads to higher economic activity and a higher demand for goods and services.

2. **Business Expansion and Job Creation:** As the demand for goods and services increases, businesses need to expand their production capacity. This expansion requires hiring additional workers, leading to job creation and a decrease in the unemployment rate.

3. **Improved Business Confidence:** During an upswing, businesses tend to have a more positive outlook on the future economic conditions. This confidence encourages them to invest in new projects, expand their operations, and hire more workers.

4. **Reduced Involuntary Unemployment:** In an upswing, the number of job opportunities increases, reducing the number of individuals who are involuntarily unemployed. As more people find employment, the overall unemployment rate decreases.

**Output during Upswing:**
During an upswing, the output or GDP (Gross Domestic Product) of an economy tends to rise. The increased economic activity and higher demand for goods and services drive businesses to produce more, resulting in higher output.

1. **Increased Production:** As the demand for goods and services rises, businesses need to increase their production to meet the growing consumer demand. This leads to an increase in output.

2. **Expanding Business Operations:** During an upswing, businesses may expand their operations by opening new factories or increasing the capacity of existing ones. This expansion leads to higher output levels.

3. **Higher Employment and Productivity:** With increased business activity and job creation, more workers are employed. This leads to higher labor productivity, which contributes to increased output.

4. **Positive Business Sentiment:** During an upswing, businesses tend to have a positive outlook on the future economic conditions. This optimism encourages them to invest in new technologies and processes, leading to increased productivity and output.

In conclusion, during an upswing, the unemployment rate falls as job opportunities increase, and the output rises due to increased economic activity and higher production levels.