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Comparing the Unemployment Rate and the Business Cycle We See

Question 8

Multiple Choice

Comparing the unemployment rate and the business cycle we see that


A) the unemployment rate generally increases during expansions and generally decreases during recessions.
B) there is virtually no relationship between the business cycle and the unemployment rate.
C) the unemployment rate eventually falls during expansions and rises during recessions.
D) higher unemployment rates are the cause of most business cycles.

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