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When an Economy Turns into a Recession So That GDP

Question 13

Multiple Choice

When an economy turns into a recession so that GDP declines for a period of time, experience tells us to expect


A) a rapid increase in the rate of unemployment and a rapid decline in the rate of inflation.
B) a potentially rapid decline in the rate of unemployment and an increase in the rate of inflation.
C) an increase in the rate of unemployment and a gradual increase in the rate of interest.
D) an increase in the rate of unemployment and gradual reductions in both the rate of inflation and the rate of interest.
E) an increase in the rate of unemployment and movement in interest rates and prices in either direction.

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