During a Recession, One Will Often Observe

question 117

Multiple Choice

During a recession, one will often observe:

• A)rising aggregate output.
• B)rising unemployment rates and falling aggregate output.
• C)rising employment rates.
• D)zero unemployment rates.

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Definitions:

Law of Averages

A layman's term for the statistical principle that over time, outcomes will tend towards the expected average; not a formal economic law. NO.

Microeconomics

The branch of economics that studies individual units of the economy, such as households and firms, and their interactions in markets.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on aggregate outcomes such as economic growth, inflation, and unemployment.

National Income

The total income earned by a country's people and businesses, including wages, rent, interest, and profits.