Which of the following will most likely occur during the recessionary phase of a business cycle?
a. Real GDP rises, and the unemployment rate falls.
b. Real GDP declines, and the rate of inflation rises.
c. The sales of most businesses decline, and the unemployment rate rises.
d. Inflation rises, and employment/population ratio falls.
c
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The inefficiencies associated with dead capital can
A) lead to increased consumption. B) increase the amount of investment as businesses look for more technologically advanced capital. C) lead to more economic freedom as firms try to get rid of the inefficient capital. D) reduce the rate of return on investment.
During the Great Recession of 2007-2009, the U.S. ________
A) experienced unprecedented declines in household wealth B) the unemployment rate more than doubled C) experienced the most severe economic downturn since the Great Depression D) all of the above E) none of the above
As a result of the pay-as-you-go nature of Social Security financing, the continuation of benefit payments is dependent upon _____
a. new individuals entering the system b. the current tax level c. current economic growth rates d. the Baby Boomer's decision on when to retire
In addition to advising the president, one duty of the Council of Economic Advisers is to
a. prepare the federal budget. b. write government regulations. c. advise Congress on economic matters. d. write the annual Economic Report of the President.