Generally, the unemployment rate rises during a contraction.How is the unemployment rate generally affected during an expansion?
A) It rises.
B) It falls.
C) It first rises, and then falls.
D) It stays the same.

Question

Generally, the unemployment rate rises during a contraction.How is the unemployment rate generally affected during an expansion?  
A) It rises. 
B) It falls. 
C) It first rises, and then falls. 
D) It stays the same.

Quizplus · Accepted Answer

During an expansion, the economy is growing, and more jobs are typically created as businesses hire to meet increasing demand. Therefore, the unemployment rate generally falls during an expansion.

Generally, the Unemployment Rate Rises During a Contraction