During periods of poor economic performance, real GDP
A) declines and unemployment declines.
B) is unchanged but unemployment rises sharply.
C) declines and unemployment rises.
D) declines but unemployment typically does not change.
Question 2
The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A) lending risk. B) systemic risk. C) moral hazard. D) liquidity risk.