DSE 14-39

In the diagram below, A is situated in a certain phase of the business cycle.

At Point A, there will be an increase in __________ in the economy.

(1) the labour employment level

(2) the general price level

(3) the sales of firms

(4) transfer payments

A. (1) and (3) only

B. (3) and (4) only

C. (1), (2) and (3) only

D. (1), (2), (3) and (4)