Suppose a market basket of goods and services costs $400 in the base 'yearand the consumer price index (CPI) is currently 125. This indicates theprice of the market basket of goods is now:$275.$425.$500.$525.Which of the following will most likely occur during the recessionaryphase of a business cycle?O Real GDP nises, and the unemployment rate fallsO Real GDP declines, and the rate of inflation nisesO The sales of most businesses decline, and the unemployment ratensesInflation rises, and employment population ratio falls

A market basket refers to a selection of goods and services that are consistently purchased and sold…

Answered: and the consumer price index (CPI) is…

and the consumer price index (CPI) is currently 125. This indicates the price of the market basket of goods is now: $275. $425. $500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose a market basket of goods and services costs $400 in the base 'year
and the consumer price index (CPI) is currently 125. This indicates the
price of the market basket of goods is now:
$275.
$425.
$500.
$525.
Which of the following will most likely occur during the recessionary
phase of a business cycle?
O Real GDP nises, and the unemployment rate falls
O Real GDP declines, and the rate of inflation nises
O The sales of most businesses decline, and the unemployment rate
nses
Inflation rises, and employment population ratio falls

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