Question

In: Economics

ifthe us is in the expansion phase of the business cycle, recoveringfrom a recession,...

if the us is in the expansion phase of the business cycle, recovering from a recession, which of the following variables is increasing?


a. real gdp

b.aggregate real income

c. cyclical unemployment

d. the natural rate of unemployment

e. both a and b

Solutions

Expert Solution

ans. e

When an economy recovers from a recessions, there is increase in aggregate demand, which leads to increasein real GDP and aggregate real income.


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