Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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During the deceleration phase of the business cycle, which of the following is most likely to occur?



Explanation:

In the deceleration phase of the business cycle, businesses typically continue hiring but at a slower rate, leading to a declining unemployment rate, albeit at a decreasing pace. Inflation does not decelerate in this phase (Option A is incorrect), and businesses generally continue to place new orders as they operate near capacity (Option B is incorrect).