
To state: The effects of economic expansion and contraction on an economy.

Explanation of Solution
When the economic activities begin to increase after trough, this period is called expansion. This period shows an increase in all the economic activities. This is also termed as period if recovery as the economic activities starts recovering after seeing a major downfall.
Contraction is that part of business cycle where the economic activities slow down. The contraction period is analyzed by economists for
Introduction:
Business cycle- The irregular changes in the level of total output that is measured by real
Chapter 13 Solutions
Economics Today and Tomorrow, Student Edition
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