Q-1,One phase of the business cycle is the expansion phase,This phase is a twofold one,including recovery and prosperity,During the recovery period there is ever-growing expansion of existing facilities,and new facilities for production are created.more businesses are created and older ones expanded.Improvements of various kinds are made.There is an ever-increasing optimism about the future of economic growth.Much capital is invested in machinery or "heavy" industry.More labour is employed.More raw materials are required.As one part of the economy develops.other parts are affected.For example a great expansion in automobiles results in an expansion of the steel,glass and rubber industries.Roads are required;thus the cement and machinery industries are stimulated.Demand for labour and materials results in greater prosperity for workers and suppliers of raw materials,including farmers.this increases purchasing power and the volume of goods bought and sold.Thus prosperity is diffused among the various segments of the population.This prosperity period may continue to rise and rise without an apparent end.However,a time comes when this phase reaches a peak and stops spiralling upwards.This is the end of the expansion phase.
iii. Which of the following statements would be most likely to begin the paragraph immediately following the passage?
