Which of the Following Will Most Likely Occur During the Contractionary

question 111

Multiple Choice

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

• A) Real GDP rises, and the unemployment rate falls.
• B) Real GDP declines, and the rate of inflation rises.
• C) The sales of most businesses decline, and the unemployment rate rises.
• D) Inflation rises, and employment/population ratio falls.

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Definitions:

Fundamentalist Christianity

A movement within Protestantism upholding traditional Christian beliefs in the literal interpretation of the Bible.

INF Treaty

The Intermediate-Range Nuclear Forces Treaty, a 1987 agreement between the United States and the Soviet Union to eliminate all nuclear and conventional missiles and their launchers with ranges of 500-5,500 km.

Intermediate-range Nuclear Missiles

Ballistic missiles with a range capability between 1,000 and 5,500 kilometers, designed to deliver nuclear warheads to intermediate distances.

Apartheid

A policy or system of segregation or discrimination on grounds of race, implemented in South Africa from 1948 until the early 1990s, which severely restricted the rights of the non-white population.