Economics Q124
- Option : A
- Explanation : The peak phase is characterized by deceleration of economic activity, acceleration of inflation and a slowdown in hiring rate. During early expansion, Gross domestic product (GDP), industrial production, and other measures of economic activity turn from decline to expansion; layoffs slow (and net e Employment turns positive), but new hiring does not yet occur and the unemployment rate remains high; consumer and business spending starts rising; Inflation remains moderate and may continue to fall. During late expansion, GDP, industrial production, and other measures of economic activity show an accelerating rate of growth; Business begins full time rehiring as overtime hours rise. The unemployment rate falls to low levels; consumer and business spending starts rising; Inflation picks up modestly.
