-If the economy was producing at point X and moved to point Y,
A)it would have moved from where the economy operates most of the time to a severe recession.
B)it would have moved from where the economy operates most of the time to a depression.
C)the unemployment rate would increase.
D)it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase.
E)it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase.

Question

-If the economy was producing at point X and moved to point Y,
A)it would have moved from where the economy operates most of the time to a severe recession. 
B)it would have moved from where the economy operates most of the time to a depression. 
C)the unemployment rate would increase. 
D)it would have moved from where the economy operates most of the time to a severe recession AND the unemployment rate would increase. 
E)it would have moved from where the economy operates most of the time to a depression AND the unemployment rate would increase.

Quizplus · Accepted Answer

Moving from point X to point Y represents a decrease in both output and employment, which would likely result in a severe recession and an increase in the unemployment rate. A depression would be even worse than a severe recession, but we cannot infer that from the information given.

-If the Economy Was Producing at Point X and Moved