Typically during a recession
A) incomes fall, and unemployment falls.
B) incomes and unemployment rise.
C) incomes fall, and unemployment rises.
D) incomes increase, and unemployment falls.
Answer: C) incomes fall, and unemployment rises.
Explanation: Typically, at the beginning of a? recession, people's income starts to fall and the duration of unemployment increases so that the unemployment rate increases.
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Consider the market for credit. When the demand for credit decreases while the supply of credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
Suppose you cash in a Certificate of Deposit (a small time deposit) to acquire the traveler's checks you'll need for your vacation. What happens to M1 and M2?
A) M1 and M2 both increase. B) M1 stays the same and M2 increases. C) M1 increases and M2 decreases. D) M1 increases and M2 stays the same.
Government intervention in agricultural markets in the U.S. began in the
A) 1920s. B) 1930s. C) 1950s. D) 1970s.
In the (consumption,leisure) space, indifference curves as we have assumed them are
A) downward sloping and bowed out of the origin. B) downward sloping and bowed towards the origin. C) upward sloping and bowed out of the origin. D) upward sloping and bowed towards the origin.