During a Recovery Phase

question 123

Multiple Choice

During a recovery phase,

• A) inflation and unemployment both increase.
• B) inflation and unemployment stay the same.
• C) inflation and unemployment both decrease.
• D) unemployment decreases and inflation increases.

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Definitions:

Law Of Increasing Cost

An economic principle that states as production of a good expands, reflecting increased demand or supply shifts, the cost of producing an additional unit of output increases.

Butter

A dairy product made from churning milk or cream, widely used as a spread and in cooking.

Gun Makers

Companies or individuals involved in the manufacturing of firearms.

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.