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

A downturn in the business cycle is typically characterized by a decrease in real output, meaning that businesses are producing and selling fewer goods and services. Lower unemployment rates and higher interest rates are not typically associated with a downturn, as unemployment tends to rise and interest rates tend to fall in response to economic weakness. Therefore, the best choice is B, lower real output.

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