- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 2. Understanding Business Cycles
- Subject 1. Overview of the Business Cycle
CFA Practice Question
Layoffs are slow, but new hiring has not yet occurred and the unemployment rate remains high. At first, business turns to overtime and temporary employees to meet rising product demands. This is a characteristic of the ______ phase.
B. expansion
C. peak
A. trough
B. expansion
C. peak
Correct Answer: B
This usually happens in early expansion. In late expansion, businesses begins full-time rehiring as overtime hours rise.
User Contributed Comments 1
User | Comment |
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lordcomas | Thus in early expansion or late trough. |