Unemployment Generally ________ During Recessions and ________ During Expansions

question 87

Multiple Choice

Unemployment generally ________ during recessions and ________ during expansions.

• A) falls; rises
• B) falls; falls
• C) rises; falls
• D) rises; rises

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Definitions:

Demand Curve

Illustrates the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Relatively Elastic

Describes a situation where a small change in price leads to a greater change in quantity demanded or supplied.

Inelastic

A description of a good's demand when consumers’ demand for it does not significantly change with a change in the good's price.

Total Revenue

The total income received by a firm from its sales of goods or services, calculated as the quantity sold times the price per unit.