QuestionCyclical unemployment tends to increase when the economy is in:ResponsesA a booma boomB neither a recession nor a boomneither a recession nor a boomC a recessiona recessionD any part of the business cycleany part of the business cycle

A declining GDP and a rising unemployment rate are most likely indicators that an economy is in which phase of the business cycle?A.TroughB.PeakC.ExpansionD.Contraction

Which one of the following is most likely to cause increased unemployment in an economy?A A decrease in the economy’s central bank interest rate.B An increase in the economy’s money supply.C A competitive devaluation of the economy’s currency.D An increase in protectionism by the economy’s trade partners.

The type of unemployment that arises during recessions is known asGroup of answer choicesthe natural rate of unemployment.cyclical unemployment.structural unemployment.frictional unemployment.

Explain why both cyclical and structural unemployment occur during a recession

Which economic indicators most strongly suggest that an economy is experiencing the expansion phase of the business cycle?A.Unemployment rates are rising while GDP is falling.B.Both GDP and unemployment rates are rising.C.Both GDP and unemployment rates are falling.D.Unemployment rates are declining while GDP is rising.