Which of the following will most likely occur during the recovery phase of a business cycle?
A. Real GDP rises, and unemployment falls.
B. Real GDP declines, and inflation rises.
C. Interest rates rise, and the number of business failures rise.
D. Inflation rises, and employment falls.
Answer: A
Economics
You might also like to view...
How can the Cambridge equation be restated according to Friedman's money demand theory?
a. Md = k(rB, rE, rD)Py b. Md = k/Py(rB, rE, rD) c. Md = Py/k(rB, rE, rD) d. Md = (rB, rE, rD)Py/k
Economics
If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:
A. less product variety. B. higher prices. C. less output supplied to the market. D. All of these statements are true.
Economics