As the economy nears the end of an expansion. which of the following typically occurs?


As the economy nears the end of an expansion, which of the following typically occurs? O A. Wages are usually rising faster t
As the economy nears the end of an expansion, which of the following typically occurs? O A. Wages are usually rising faster t

Answer

Step-1) When economy nears the end of an expansion, Because During an expansion, unemployment falls and inflation increases.

Hence worker wages starts to rise faster due to the high level of inflation. These is indication of high economic output and growth.

For Example,Currently some business in India is experiencing the same situation.

Due to high cost of raw materials and Production, firms are unable to earn the required profits and also unable to rise the price the price of product due to high level of strict competition.

Due to the high cost and consumption level banks tend to rise the interest rates to industrial business.

Therefore the correct option is "All of the above occur".

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