An economy is most likely to be in the contraction (recession) phase of the business cycle when there is a rise in:
capacity utilization.
the marginal propensity to import.
the level of spare capacity.
business capital expenditure.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.