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In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates quizlet?

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At what phase of the business cycle does high unemployment occur?

Unemployment increases during business cycle recessions and decreases during business cycle expansions (recoveries). Inflation decreases during recessions and increases during expansions (recoveries).

Which stage of the business cycle has the highest inflation rate?

If inflation is a cycli- cal phenomenon, rising and falling with the pace of economic activity, then the inflation rate should be greatest during the period immediately prior to a cyclical peak, and lower during the recession and subsequent recovery period.

When the economy is at the natural rate of unemployment?

When the economy is at the natural rate of unemployment, it is said to be at the “full employment” level and to have reached its potential real GDP.

At which phase of the business cycle will real GDP be the greatest?

The expansion phase is sometimes called recovery. b. At the peak of the business cycle, real GDP is at a maximum.

phase business cycle economy experience rising real output falling unemployment rates quizlet

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