Which of the following is not true of a recession?
A) The economy is overheated.
B) Cyclical unemployment is high.
C) Unemployment is caused by insufficient spending.
D) If the economy is in equilibrium,the aggregate expenditure line is too low to create an intersection at the full-employment level.
E) If employers hired more workers to reduce unemployment,they would be unable to sell all the extra output those workers would produce.

Question

Quizplus · Accepted Answer

A recession is generally characterized by a slowdown in economic activity, low GDP growth, and high unemployment. An overheated economy, on the other hand, is characterized by high GDP growth and low unemployment, and is more likely to lead to inflation.

Which of the Following Is Not True of a Recession