Fluctuations in total output are the reverse image of fluctuations in
A)the inflation rate.
B)the unemployment rate.
C)gross domestic product.
D)the GDP deflator.

Question

Quizplus · Accepted Answer

Fluctuations in total output inversely correlate with fluctuations in the unemployment rate. When total output (or economic activity) decreases, unemployment typically increases because businesses demand less labor. Conversely, when the economy is strong and total output increases, unemployment tends to decrease as more workers are needed.

Fluctuations in Total Output Are the Reverse Image of Fluctuations