**Question:** Which of the following will most likely occur during the recovery phase of a business cycle? - a. Real GDP rises, and unemployment falls. - b. Inflation rises, and employment falls. - c. Interest rates rise, and the number of business failures rise. - d. Real GDP declines, and inflation rises. This question is designed to test students' understanding of economic indicators during the recovery phase of a business cycle. In this phase, economies typically experience growth characterized by an increase in GDP and a decrease in unemployment as businesses and consumer confidence improve.
**Question:** Which of the following will most likely occur during the recovery phase of a business cycle? - a. Real GDP rises, and unemployment falls. - b. Inflation rises, and employment falls. - c. Interest rates rise, and the number of business failures rise. - d. Real GDP declines, and inflation rises. This question is designed to test students' understanding of economic indicators during the recovery phase of a business cycle. In this phase, economies typically experience growth characterized by an increase in GDP and a decrease in unemployment as businesses and consumer confidence improve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The business cycle refers to the fluctuations in the gross domestic product of an economy during the long-term growth trend.
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