An Observer of the Economy Notices That Over the Past

Multiple Choice

An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that

A) a trough in the business cycle will soon be reached.
B) a recession is in progress.
C) an expansion is occurring in the economy.
D) inflation is not occurring.