Question:

Which of the following key facts about economic fluctuations is supported by the graph of the growth rate in r

by  |  earlier

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the graph is irregular continuous line

A. Economic fluctuations are irregular and unpredictable.

B. As output falls, unemployment rises.

C. Most macroeconomic variables fluctuate together

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2 ANSWERS


  1. If the graph is downward sloped, then go with B.  Because output levels and unemployment rates tend to move in opposite directions, this gets you a negative sloped relationship.


  2. a. it was prob. the 'random walk' u r talking 'bout, if there is a single line, c is ruled out and b by context of ques.

    thank  u!

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