What happens to economic growth and unemployment during a business cycle recession? What is the relationship between the money growth rate and a business cycle recession?
What will be an ideal response?
During a recession, output declines and unemployment increases. Prior to almost every recession in the U.S. the money growth rate has declined, however, not every decline is followed by a recession.
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A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A, but location A has a higher cost of living than location B
a. The company likely needs to pay workers in location A more. b. The company likely needs to pay workers in location B more. c. It's not clear if the company would need to pay more to workers in location A or location B. d. The company must pay workers the same amount.
In the textual example, Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates. This success created an incentive for other banks to:
A. offer similar loans to the poor. B. go out of business. C. seek government action to ban group responsibility lending. D. avoid catering to a high risk group.