Typically, as an economy begins to emerge from a recessionary phase of the business cycle
A) unemployment falls immediately.
B) unemployment continues to rise.
C) inflation begins to fall.
D) investment begins to fall.
Answer: B
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If the U.S. dollar becomes weaker in international markets, the net effects will include
A) a decrease in short-run aggregate supply (SRAS) and an increase in aggregate demand. B) an increase in short-run aggregate supply (SRAS) and a decrease in aggregate demand. C) a decrease in both short run aggregate supply (SRAS) and aggregate demand. D) an increase in both short run aggregate supply (SRAS) and aggregate demand.
Suppose that a $5.50 price floor is imposed on a corn market whose equilibrium price was $4.50 per bushel. Which of the following will happen?
a. There will be an excess demand of corn at $5.50. b. The profits of all corn farmers will increase by $1 per bushel. c. There will be an excess supply of corn at $5.50. d. The equilibrium price of corn will fall below $4.50 per bushel. e. The excess supply at $5.50 will fall to zero as the equilibrium price increases to $5.50 .
The long-run aggregate supply curve shifts right if
a. either immigration from abroad increases or technology improves. b. immigration from abroad increases, but not if technology improves. c. technology improves, but not if immigration from abroad increases. d. None of the above are correct.
Olives are used to produce olive oil. If the price of olives increases:
A. the demand for olive oil increases. B. the demand for olive oil decreases. C. the supply of olive oil increases. D. the supply of olive oil decreases.