Which of the following statements is TRUE? a. Over the business cycle, the economy's level of output and its unemployment rate move in opposite directions. b. During recessions, the unemployment rate typically falls. c. During expansions, aggregate output typically declines. d. Because unemployment is a microeconomic variable, it does not have any correlation with the business cycle

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 1CQ
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Which of the following statements is TRUE?

a.

Over the business cycle, the economy's level of output and its unemployment rate move in opposite directions.

b.

During recessions, the unemployment rate typically falls.

c.

During expansions, aggregate output typically declines.

d.

Because unemployment is a microeconomic variable, it does not have any correlation with the business cycle.

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