Which economic indicators most strongly suggest that an economy is experiencing the expansion phase of the business cycle?
O A. Unemployment rates are rising while GDP is falling.
O B. Both GDP and unemployment rates are falling.
OC. Both GDP and unemployment rates are rising.
O D. Unemployment rates are declining while GDP is rising.

D. Unemployment rates are declining while GDP is rising.

Explanation:

A business cycle is the natural increase and decrease in economic activities in a country. It refers to the shifting from an economic boom to a downturn that occurs naturally in the economy. The expansion phase is also the boom in a business cycle.  

At expansion, the country experiences an increase in the level of economic activities. There is an increase in demand for products and services. Businesses and households have increased incomes. Due to the increase in demand, businesses employ more people to help increase production. As a result, GDP increases, and unemployment declines.

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