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Which of the Following Is Not True of a Recession

Question 6

Multiple Choice

Which of the following is not true of a recession?


A) The economy is overheated.
B) Cyclical unemployment is high.
C) Unemployment is caused by insufficient spending.
D) If the economy is in equilibrium,the aggregate expenditure line is too low to create an intersection at the full-employment level.
E) If employers hired more workers to reduce unemployment,they would be unable to sell all the extra output those workers would produce.

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