Question
Which o f the fo llowin g BES T descr ibes th e eco nomy at Poin t 4? A. Top of the expan sion B. People losing jobs , busin ess closing C. New jobs openin g up, econo my impr oving D. Low est po int in th e eco nomy
Answer
4.1
(201 Votes)
Elliot
Professional · Tutor for 6 years
Answer
D. Lowest point in the economy
Explanation
## Step 1: Understand the question and the options given. The question asks us to identify the state of the economy at a certain point (Point 4). The options provided describe different stages of an economic cycle.## Step 2: Analyze each option in relation to the typical stages of an economic cycle. Option A suggests the peak of an expansion, which is when the economy is at its highest point, with high levels of employment and production. Option B suggests a recession or contraction, characterized by job losses and business closures. Option C suggests a recovery or expansion phase, where new jobs are created and the economy is improving. Option D suggests the trough or the lowest point in the economy, which is the end of a recession before the economy starts to recover.## Step 3: Based on the typical progression of an economic cycle, Point 4 is most likely to represent the trough or the lowest point in the economy. This is because it follows a period of contraction (as suggested by Option B), and precedes a period of recovery or expansion (as suggested by Option C).### The formula to understand this is: ### **Peak (Top of the expansion) -> Contraction (Recession) -> Trough (Lowest point in the economy) -> Expansion (Recovery)**