Which of the Following Occurs During an Expansion

question 63

Multiple Choice

Which of the following occurs during an expansion?

• A) Output rises,employment rises and unemployment falls.
• B) Output falls,employment rises and unemployment falls.
• C) Output rises,employment falls and unemployment falls.
• D) Output rises,employment rises and unemployment rises.
• E) Output rises,employment rises and tax revenues fall..

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Definitions:

Private Bargaining

The process of negotiating terms directly between parties without external intervention.

Externality

An outcome from economic behavior that impacts individuals not directly involved, which may be beneficial or harmful.

Initial Assignment

The initial distribution or allocation of tasks, responsibilities, or resources at the start of a project or process.

Liability Rule

A legal principle that allows for compensation when someone's action causes harm or loss to another, even without an agreement between the parties.