During an economic expansion, real GDP ____ and unemployment ____. (a) increases, increases (b) increases, decreases (c) decreases, increases (d) decreases, decreases

During an economic expansion, real GDP and unemployment . (a) increases, increases (b) increases, decreases (c) decreases, increases (d) decreases, decreases

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 7PA

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Question

During an economic expansion, real GDP ____ and unemployment ____.

(a)
increases, increases
(b)
increases, decreases
(c)
decreases, increases
(d)
decreases, decreases

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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