Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true ?

• A) The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
• B) When unemployment is rising then real GDP is rising.
• C) The economic problem typically associated with a recovery is rising unemployment.
• D) Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.

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Definitions:

Purposeful Behavior

Actions taken by individuals or entities aimed at achieving specific goals or outcomes, based on rational decision-making processes.

Desired Outcomes

Refers to the specific goals or results that an individual or organization aims to achieve.

Resource Availability

The extent to which necessary resources, such as materials, labor, and capital, are accessible for the production process or project execution.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.