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Cost of living increases when business cycle is _____
  • a)
    expanding
  • b)
    contracting
  • c)
    at peak
  • d)
    at lowest point
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Cost of living increases when business cycle is _____a)expandingb)cont...
Cost of living typically increases when the business cycle is at peak. At this stage, economic activity is at its highest, leading to increased demand for goods and services, which can drive up prices. This results in inflationary pressures, causing the cost of living to rise. In contrast, during expansion phases, economic growth is more balanced with increasing employment and production, without immediate inflation.
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Cost of living increases when business cycle is _____a)expandingb)contractingc)at peakd)at lowest pointCorrect answer is option 'C'. Can you explain this answer?
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