SIE practice questioneasyEconomic Indicators – GDP
A rapidly rising Gross Domestic Product (GDP) most likely indicates which phase of the business cycle?
- AExpansion✓ Correct answer
- BContraction
- CTrough
- DRecession
Explanation
Why A — Expansion
GDP growth typically signals an expansion phase. Contraction, trough, and recession reflect economic slowdown, not rapid growth.
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