During the recovery period after an economic crisis: Select one: a

Economics Aug 07, 2020

During the recovery period after an economic crisis:

Select one:

a. GDP and unemployment will rise

b. GDP will rise but unemployment will fall

c. GDP and unemploymment will fall

d. GDP will fall but unemployment will rise

Expert Solution

B is the correct option i.e. GDP will rise but unemployment will fall.
Because:
The stage of a business cycle that follows a recession that is distinguished by a sustained period of improvement in the business activity is known as Economic recovery. Normally during this stage i.e. economic recovery, GDP, and income rise but there is a fall in unemployment because the economy rebounds.

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