Which of the Following Will Most Likely Occur During the Recovery

question 33

Multiple Choice

Which of the following will most likely occur during the recovery phase of a business cycle?

• A) Real GDP rises, and unemployment falls.
• B) Real GDP declines, and inflation rises.
• C) Interest rates rise, and the number of business failures rise.
• D) Inflation rises, and employment falls.

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Definitions:

Securities Exchange Act

A U.S. law governing the trading of securities, aimed at protecting investors by ensuring transparency and fairness in the securities market.

Misappropriation

The illegal, unethical, or unauthorized use of someone else's property or funds, especially for one's own use or benefit.

Short-swing Profits

Profits earned by corporate insiders from the purchase and sale, or sale and purchase, of company stock within a six-month period, which are subject to recovery by the corporation under specific regulations.

Tippees

Individuals who receive confidential information about a company and use it for stock trading, often illegally.