Which of the following will most likely occur during the expansionary phase of the business cycle a. real gdp rises and unemployment falls b. real gdp rises and unemployment rises c. real gdp declines and inflation rises d. interest rate rise and the number of business failures rise e. inflation rises and employment falls

The answer is "A.real GDP rises and unemployment falls".

Expansion is the period of the business cycle when the economy moves from a trough to a pinnacle. It is a period when the dimension of business action floods and total national output (GDP) extends until the point when it achieves a pinnacle. A time of extension is otherwise called a financial recuperation.  

An expansion is one of two essential business cycle stages; the other is contraction. The progress from development to withdrawal is a pinnacle, and the changeover from contraction to expansion is a trough.

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