At which point would the government be most likely to try to stimulate the economy?

At which point would a business be most likely to hire new workers?

[Graph illustrating the business cycle with labeled points]

3 4 5 Time



Answer :

Final answer:

The business cycle involves distinct phases, with the government intervening during contractions and businesses hiring during the trough phase.


Explanation:

The business cycle consists of four phases: expansion, peak, contraction, and trough. During a contraction, when growth slows, employment declines, and pricing pressures subside, the government is most likely to try to stimulate the economy through expansionary macroeconomic policies. In contrast, at the trough phase when the economy hits bottom and prepares for the next expansion phase, a business would be most likely to hire new workers to meet rising demand.


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