During a recession, cyclical unemployment ________ and real GDP ________

A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
E) does not change; decreases


B

Economics

You might also like to view...

The United States health care reforms listed in the PPACA will lead to __________.

  • increased economic efficiency in delivering health care services

  •  

    greater government involvement in the health care system

  •  

    market-based solutions to control rising health care spending

  •  
    I DON'T KNOW YET

Economics

If the interest rate on a U.S. one-year bond is 1%, the interest rate on a Mexican one-year bond is 5%, and investors expect the dollar to appreciate by 1% versus the peso, what is the currency premium for U.S. investors to hold Mexican pesos?

A) -3% B) 3% C) 4% D) 7%

Economics

Profit maximization occurs at the quantity where marginal cost equals marginal revenue

a. True b. False

Economics

Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.

A. increase; not change B. decrease; increase C. increase; increase D. increase; decrease

Economics