A Typical Trend During a Recession Is That

question 36

Multiple Choice

A typical trend during a recession is that:

• A) the unemployment rate falls.
• B) the popularity of the incumbent president rises.
• C) incomes fall.
• D) the inflation rate rises.

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Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in GDP.

Federal Budget Deficit

A situation where the federal government's expenditures exceed its revenues within a given fiscal year.

Paradox of Thrift

If everyone tries to save more, they will all end up saving less.