- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 1. The Business Cycle and its Phases
CFA Practice Question
Toward the top of the economic cycle, as final demand starts to fall off, ______ starts to occur abruptly.
A. firing workers
B. a cut in equipment spending
C. inventory decumulation
Explanation: At the beginning of a recession, companies don't start firing workers right away, and inventory starts to accumulate involuntarily.
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