The steady growth line best supports which conclusion about the economy
represented in the graph?
The Business Cycle
Production output
h w
Time
A The economy never experiences significant periods of contraction
.
B. The economy does not display consistent patterns in its business
cycles
C. The economy improves steadily over several business cycleding
D. The economy has pronounced troughs but no clear peaks.
The steady growth line indicates that the economy improves steadily over several business cycles.
Business cycle refers to the period whereby there is growth and decline in the economy of a nation and this can be measured through the gross domestic product of such economy.
The four stages in the business cycle are the expansion, the peak period, the contraction period and the trough period. In the expansion period, there a relatively rapid growth.
Based on the graph given, the steady growth lines shows that there was a steady improvement in the economy improves over the business cycles.
