Snowdonia is a small country which produces wrought iron and cheesecakes and is experiencing fixed capacity growth in year 1. 1. Which part of the business cycle is Snowdonia in?
a. recovery
b. peak
c. trough
d. recession

2. Fixed capacity growth is demonstrated on the graph as a movement from point
_ to point _.

3. Long‑run growth in Snowdonia would be illustrated on the graph as a movement from point _ to point _.

WORD BANK (Q2 & Q3)
- Point A
- Point B
- Point C