In Case of Business Cycles, If Output Rises Above the Trend

question 54

Multiple Choice

In case of business cycles, if output rises above the trend line

• A)unemployment and inflation both rise.
• B)unemployment and inflation both fall.
• C)unemployment rises and inflation falls.
• D)unemployment falls and inflation rises.

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Definitions:

Reflex Arc

The neural pathway that mediates a reflex action involving sensory nerves, a central nervous system integration center, and motor nerves.

Nervous System

An extensive network of specialized cells and tissues responsible for controlling and coordinating body activities by transmitting electrical and chemical signals throughout the body.

Meninx

A term related to the meninges, which are the three layers of protective tissue surrounding the brain and spinal cord.

Withdrawal Reflex

An involuntary reaction to a painful or harmful stimulus that results in the quick retraction of the body part exposed to the danger, providing a protective mechanism.