Which of the following will most likely occur during the recessionary phase of a business cycle?
a. Real GDP rises, and the unemployment rate falls.
b. Real GDP declines, and the rate of inflation rises.
c. The sales of most businesses decline, and the unemployment rate rises.
d. Inflation rises, and employment/population ratio falls.
c
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If the net public debt expanded last year, then which of the following most likely occurred during the year?
A) The government's budget was balanced. B) The government's tax collections exceeded its spending. C) The government experienced a budget surplus. D) The government experienced a budget deficit.
In the coordination failure model, how is a particular equilibrium attained?
A) The Federal Reserve picks it. B) It depends on total factor productivity shocks. C) It depends on money supply shocks. D) because people expect it to be the equilibrium.