Which of the following is a characteristic of the prosperity phase of the business cycle? stagnant prices high levels of production ambivalence about the economy reduced incomes

High levels of production, just took the test.

High levels of production are the characteristic of the prosperity phase of the business cycle.

Further Explanation:-

The rise and fall in the production output of goods and services in the economy is known as the Business Cycle. These measures are typically measured by using the rise as well as fall of the Gross Domestic Product and also can be adjusted for inflation. The Business cycle can't be look as equalant to market cycle as market  

The Debt cycle is very different as compared to business cycle as the debt cycle can be referred as rise and fall in respect to the government debt. On the other hand, The Business cycles can be referred as the fluctuations in the economic activity that is experienced by the economy over the period of time. Output of all sectors can be included in these fluctuations and these sectors can be households, government and other Business outputs.  

The Business cycle can also be characterized by Contraction and expansion. During the period of Expansion, these are economic decline during this period whereas during expansion the economy sees the growth. Production levels are high are the characteristic of the prosperity phase of the business cycle.  

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Answer Details:

Grade – High School

Subject – Economy

Chapter – Business Cycle

Keywords – Business Cycle, Economy, Contraction, expansion, Debt, Measure, Government, Stock Market, Inflation, GDP, Goods.  

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