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Which statement best explains the relationship between points A and B?



A. Consumption reaches its highest point, and then supply begins to fall.



B. Inflation reaches its highest point, and then the economy begins to expand.



C. Production reaches its highest point, and then the economy begins to contract.



D. Unemployment reaches its highest point, and then inflation begins to decrease.

Respuesta :

Answer: c

Explanation:

Production reaches its highest point, and then the economy begins to contract.

When production begins to span much with little or now buyer, the economy begins to experience decline. This is caused by the reduction in demand . When the demnd is not matching the supply this case tends to occur.

Answer:

The correct answer is C, "Production reaches its highest point, and then the economy begins to contract."

Explanation:

I just got it correct on the test. I hope this helps!

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