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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

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

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

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ElliotProfessional · Tutor for 6 years

Answer

D. Lowest point in the economy

Explain

## Step 1: <br />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.<br /><br />## Step 2: <br />Analyze each option in relation to the typical stages of an economic cycle. <br /><br />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. <br /><br />Option B suggests a recession or contraction, characterized by job losses and business closures. <br /><br />Option C suggests a recovery or expansion phase, where new jobs are created and the economy is improving. <br /><br />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.<br /><br />## Step 3: <br />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).<br /><br />### The formula to understand this is: <br />### **Peak (Top of the expansion) -> Contraction (Recession) -> Trough (Lowest point in the economy) -> Expansion (Recovery)**
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