What typically happens during the contraction phase?

CA Foundation · Business Economics · MTP · September 2025
What typically happens during the contraction phase?
(A) A. Employment increases
(B) B. Prices rise sharply
(C) C. Investment and demand decline
(D) D. GDP grows rapidly

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Investment and demand decline

Topics: Business Cycles

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