In: Economics
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
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.