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    Question

    Which of the following is not true about the

    ‘expansion’ phase of the economy?
    A Increase in national output Correct Answer Incorrect Answer
    B Increase in consumer spending Correct Answer Incorrect Answer
    C Excess production capacity of industries Correct Answer Incorrect Answer
    D Expansion of bank credit Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Excess production capacity is a situation where a firm is producing at a lower scale of output than it has been designed for. 

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