If the economy has just entered phase 4 on the business cycle, the statement MOST LIKELY true would be:
- GDP is increasing, unemployment is decreasing
During phase 4 of the business cycle, also known as the expansion phase, the economy is typically growing, leading to an increase in Gross Domestic Product (GDP) as businesses are thriving and consumer spending is on the rise. Simultaneously, unemployment tends to decrease during this phase as companies are hiring more workers to meet the growing demand for goods and services.
This scenario is a common characteristic of an economic expansion phase, where economic indicators like GDP and employment levels tend to show positive growth trends.
