When the Economy Goes into a Recession, We Can Generally

question 19

Multiple Choice

When the economy goes into a recession, we can generally expect that

• A)inflation will decrease while output will increase
• B)inflation will increase while unemployment will decrease
• C)inflation and output will increase
• D)inflation will decrease while unemployment will increase
• E)none of the above

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Definitions:

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating corporate behaviors and practices.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and limiting competition.

Breaking Up

In a business context, refers to the action of dissolving, restructuring, or splitting a company or organization into smaller units.

Antitrust Laws

Regulations established by governments to prevent large businesses from gaining too much power, encouraging competition by limiting monopolies, cartels, and oligopolies.