During a recent in-house seminar at United Banks of Davos, Helmut Fahrstadt, the seminar leader, was discussing the business cycle and its phases. He made the following statement: "During a recession one should expect an economy’s real GDP to increase, its rate of inflation to increase, and its rate of employment to fall. " Is the statement made by Fahrstadt correct as it pertains to real GDP, inflation and the rate of employmentReal GDP Rate of Inflation Rate of Employment()①A. Correct Incorrect Incorrect ②B. Incorrect Correct Incorrect ③C. Incorrect Incorrect Correct
A. ①
B. ②
C. ③
参考答案:C
解析:
During a recession, real GDP is decreasing and the unemployment rate is increasing. In general, during this phase the rate of inflation is most likely decreasing.