During the Past Quarter Real GDP Increased by 2

Multiple Choice

During the past quarter real GDP increased by 2.5 percent and the unemployment rate dropped to 5.40 percent. Economists predict that in the next quarter GDP will grow at a rate of 3.1 percent and the unemployment rate will fall to 5.38 percent. The economy is most likely:

A) at the peak of the business cycle.
B) in a contraction phase.
C) in an expansion phase.
D) at the trough of the business cycle.