Choice "C" is correct. During an expansion, real GDP is rising and unemployment is falling.
Choice "b" is incorrect. A recession is when real GDP is falling NOT rising.
Choice "d" is incorrect. A peak is the highest point of economic activity. It is the point where real GDP is at its highest level in the cycle and unemployment is at its lowest level in the cycle.
Choice "a" is incorrect. A trough is the lowest level of economic activity. It is the point where real GDP is at its lowest level in the cycle and unemployment is at its highest level in the cycle.
