Which Statement About Unemployment Is FALSE

question 143

Multiple Choice

Which statement about unemployment is FALSE?

• A) Unemployment always falls during recessions.
• B) Unemployment always falls during expansions.
• C) There is a strong negative relation between growth in real GDP and changes in unemployment.
• D) In general, there is a trade-off between inflation and unemployment in the short run.

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Definitions:

Bond Prices

Bond prices refer to the market value of a bond, which can fluctuate based on interest rates, the creditworthiness of the issuer, and other market factors.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and low Human Development Index relative to other countries.

Stock Exchanges

Marketplaces where stocks (shares of ownership in businesses) are bought and sold by investors.

Open Auctions

A market mechanism in which prices are determined through bids and offers made openly by participants, often in real-time.