What is the historical relationship in the United States between the unemployment rate and recessions?
A) The relationship depends on whether or not the price level is also changing.
B) The unemployment rate rises during a recession and turns negative during the subsequent recovery.
C) The unemployment rate rises shortly before a recession begins and declines shortly before it ends.
D) The unemployment rate rises soon after a recession has begun and starts to decline sometime after the recovery has started.
E) There is no regular or systematic link that can be discerned from the data.
Question 2
The costs of a recession are largely
A) losses to some people but gains to others.
B) made up in the subsequent recovery.
C) the consequences of falling prices.
D) the costs of disappointed expectations.
E) welcomed by advocates of zero economic growth.
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