Question

1 multiple choice 1 point
a period when economic output increases known as a(n) ______.
contraction
business cycle
recession
expansion

2 multiple choice 1 point
a period when economic output decreases known as a(n) ______.
peak
contraction
expansion
business cycle

3 multiple choice 1 point
a significant decline in general economic activity extended over a period of time is known as a(n) ______.
recession
peak
expansion
business cycle

Explanation:

1. For the first question: Economic expansion is defined as a phase where economic output grows. Contraction/recession involve falling output, and business cycle is the full pattern of growth and decline.
2. For the second question: Contraction is the phase where economic output decreases. Peak is the highest point of output, expansion is growth, and business cycle is the full cycle.
3. For the third question: Recession is a prolonged, significant drop in overall economic activity. Peak is the high point, expansion is growth, and business cycle is the full cycle of economic phases.

Answer:

1. D. expansion
2. B. contraction
3. A. recession