Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) There is no relationship between real GDP and the unemployment rate over a business cycle.
B) During a business cycle, the unemployment rate declines at the same time real GDP declines.
C) During a business cycle, the unemployment rate increases at the same time real GDP declines.
D) During a business cycle, the unemployment rate increases at the same time real GDP increases.
E) During a business cycle, the unemployment rate increases only if real GDP is below potential GDP.