Author Question: Which of the following will most likely occur during the recovery phase of a business cycle? a. ... (Read 63 times)

appyboo · **on:** Jun 30, 2018

Which of the following will most likely occur during the recovery phase of a business cycle?
a. Real GDP rises, and unemployment falls.
b. Real GDP declines, and inflation rises.
c. Interest rates rise, and the number of business failures rise.
d. Inflation rises, and employment falls.

Question 2

The effect of an increase in aggregate supply is a(n):
a. increase in the general level of prices and a decrease in real output.
b. increase in the general level of prices and an increase in real output.
c. decrease in the general level of prices and a decrease in real output.
d. decrease in the general level of prices and an increase in real output.