Comparing the unemployment rate and the business cycle we see that
A) higher unemployment rates are the cause of most business cycles.
B) there is virtually no relationship between the business cycle and the unemployment rate.
C) the unemployment rate eventually falls during expansions and rises during recessions.
D) the unemployment rate generally increases during expansions and generally decreases during recessions.

Question

Quizplus · Accepted Answer

The unemployment rate typically falls during economic expansions as businesses grow and hire more workers, and it rises during recessions when economic activity slows and businesses reduce their workforce.

Comparing the Unemployment Rate and the Business Cycle We See