Answer
c) falls, rises
Work Step by Step
The economy going into a recession indicates the opening of a contractionary gap. Real GDP will fall as a result, and unemployment will rise due to an increase in cyclical unemployment.
Principles of Macroeconomics 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
1-28516-591-8
ISBN 13:
978-1-28516-591-2
Chapter 20 - Aggregate Demand and Aggregate Supply - Quick Check Multiple Choice - Page 454: 1
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