What Happens to Unemployment and Real Output During the Self-Correction

question 106

Multiple Choice

What happens to unemployment and real output during the self-correction process after a fall in aggregate demand?

• A)Unemployment decreases and real output increases.
• B)Unemployment decreases and real output decreases.
• C)Unemployment increases and real output increases.
• D)Unemployment increases and real output decreases.

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Definitions:

Conditional Probabilities

The probability of a specific event happening after another event has already taken place.

IUPAC

The International Union of Pure and Applied Chemistry, an organization that sets standards for naming chemical compounds.

Compound

A mixture resulting from the chemical combination of two or more elements in exact proportions.

Anisole

A colorless liquid organic compound, essentially methoxybenzene, used in perfume and flavoring.