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Reading 25: U.S. Inflation, Unemployment, and Business Cycl

Q1. The expansion phase of a business cycle is least likely characterized by:

A)    increasing unemployment.

B)    increasing inflationary pressures.

C)    a positive rate of economic growth.

Q2. During an economic contraction:

A)    the unemployment rate typically decreases.

B)    real GDP growth is greater than its sustainable long-term rate.

C)    inflationary pressures are typically decreasing.

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