Author Question: When the economy enters a recessionary phase of the business cycle, unemployment tends to A) be ... (Read 79 times)

renzo156 · **on:** Jun 29, 2018

When the economy enters a recessionary phase of the business cycle, unemployment tends to

A) be unchanged.
B) increase.
C) decrease.
D) change in the same direction as the rate of inflation.

Question 2

Refer to Figure 23-1. If the economy is at a level of aggregate expenditure given by point K

A) production is less than spending.
B) inventories will increase above their desired level.
C) the economy is in equilibrium.
D) production is greater than spending.