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Which of the Following Statements Is True

Question 74

Multiple Choice

Which of the following statements is true?


A) There is no relationship between real GDP and the unemployment rate over a business cycle.
B) During a business cycle, the unemployment rate declines at the same time real GDP declines.
C) During a business cycle, the unemployment rate increases at the same time real GDP declines.
D) During a business cycle, the unemployment rate increases at the same time real GDP increases.
E) During a business cycle, the unemployment rate increases only if real GDP is below potential GDP.

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