During a Recession the Unemployment Rate Generally ________ and During

question 37

Multiple Choice

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

• A) does not change; falls
• B) falls; rises
• C) rises; rises
• D) rises; does not change
• E) rises; falls

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Definitions:

Profit Maximizing

A strategy or process aimed at achieving the highest possible profit from business operations.

Technology Improvement

Enhancements or advancements in technology that lead to more efficient processes or better quality outcomes.

MC

Stands for Marginal Cost, which is the cost incurred by producing one additional unit of a good or service.

Output

The quantity of goods or services produced within a given time period by a firm, sector, or economy.