Cyclical unemployment
A. occurs even when an economy is producing at a point on its production possibilities frontier.
B. occurs only during a recession.
C. tend to occur when an economy experiences inflation.
D. is a part of an economy's natural rate of unemployment.
Ans: B. occurs only during a recession.
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Expansionary monetary policy decreases the federal funds rate
Indicate whether the statement is true or false
If we say that two variables are inversely related, this means that:
A. the two graph as an upsloping line. B. an increase in one variable is associated with a decrease in the other. C. an increase in one variable is associated with an increase in the other. D. the resulting relationship can be portrayed by a straight line parallel to the horizontal axis.