Which of the following is characteristic of a downturn in the business cycle?
A)Lower unemployment rates.
B)Lower real output.
C)Higher interest rates.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

During a downturn in the business cycle, there is typically a decrease in real output, which means that the economy is producing and selling fewer goods and services. Unemployment rates may increase as businesses cut back on hiring or lay off workers, and interest rates may decrease as central banks attempt to stimulate economic activity. Therefore, option A and C are incorrect.

Which of the Following Is Characteristic of a Downturn in the Business