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CFA Level 1
Economics

Identifying Expansion in Business Cycles

Hard Macroeconomics Business Cycles

Consider the following scenario: An economy experiences a period of rising production and income levels, leading to increased consumer spending and investment by businesses. However, this phase lasts for only a few quarters before signs of inflation appear, followed by a sudden downturn characterized by reduced consumer confidence and significant layoffs.

Based on this information, which phase of the business cycle is primarily being described in this scenario?

Hint

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