Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
B. When unemployment is rising then real GDP is rising.
C. The economic problem typically associated with a recovery is rising unemployment.
D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.
Answer: D
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Industrial countries are not usually involved in currency bailouts since they are not likely to be affected by the devaluation of another country's currency.
Answer the following statement true (T) or false (F)
Technological advances in pollution reduction:
A. reduce the demand for pollution permits. B. increase the demand for pollution permits. C. reduce the supply of pollution permits. D. increase the supply of pollution permits.