An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that
A) inflation is not occurring.
B) an expansion is occurring in the economy.
C) a recession is in progress.
D) a trough in the business cycle will soon be reached.
Correct Answer:
Verified
Q185: Recessions and expansions affect most strongly which
Q186: Auto and steel workers commonly experience this
Q187: Unemployment caused by the fluctuation of the
Q188: Cyclical unemployment
A) decreases during an expansion.
B) grows
Q189: A recession causes a decrease in the
Q191: During an economic expansion, real GDP _
Q192: Suppose the country of Quasiland experienced a
Q193: Cyclical unemployment
A) is the major part of
Q194: Cyclical unemployment _ during expansions and _
Q195: The primary factor leading to cyclical unemployment
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