Which of the Following Is Not True of a Recession

question 6

Multiple Choice

Which of the following is not true of a recession?

• A) The economy is overheated.
• B) Cyclical unemployment is high.
• C) Unemployment is caused by insufficient spending.
• D) If the economy is in equilibrium,the aggregate expenditure line is too low to create an intersection at the full-employment level.
• E) If employers hired more workers to reduce unemployment,they would be unable to sell all the extra output those workers would produce.

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Definitions:

Likely

This term implies a high probability or strong chance that an event will happen.

Measurements

The act or process of quantifying physical or abstract attributes by using instruments or techniques.

Standard Error

A measure of the variability or dispersion of a sample statistic, indicating its precision as an estimate of the population parameter.

Sample Median

The middle value of a sample when the values are arranged in ascending or descending order, or the average of the two middle values if there is an even number of observations.