A typical trend line drawn through a series of business cycles
a. is horizontal, indicating that the economy always returns to equilibrium
b. is horizontal, indicating that economic phases offset each other
c. is downward sloping, indicating that the unemployment rate decreases over time
d. is upwards sloping, indicating that the unemployment rate decreases over time
e. is upward sloping, indicating an annual rate of growth that is greater than zero
E
You might also like to view...
Suppose the U.S. dollar depreciates, and there is no change in monetary policy. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased
As a result of specialization and trade, individuals no longer have to make choices about how to spend their incomes.
Answer the following statement true (T) or false (F)