Question
Line graph labeled Business Cycle. Curve rises, falls, rises again, and begins to fall again. Point A marks top of first curve. Point E marks top of second curve. Point C marks bottom of curve between the two rises. B labels a black arrow spanning the fall between A and C. D labels a black arrow spanning the rise between C and E.
Public Domain
Which of the following describes a key difference between B and D?
Employment rises in B but falls in D.
Gross domestic product rises in B but falls in D.
Inflation rises in B but falls in D.
Unemployment rises in B but falls in D.
Answers
GPT-4o mini
The key difference between B and D can be described as follows:
- **B (the fall between points A and C)** represents a period of economic contraction where employment typically falls, GDP decreases, inflation may also fall, and unemployment rises.
- **D (the rise between points C and E)** signifies a period of economic expansion where employment rises, GDP increases, inflation may rise, and unemployment falls.
Therefore, the correct statement regarding the key difference between B and D would be:
**Unemployment rises in B but falls in D.**
- **B (the fall between points A and C)** represents a period of economic contraction where employment typically falls, GDP decreases, inflation may also fall, and unemployment rises.
- **D (the rise between points C and E)** signifies a period of economic expansion where employment rises, GDP increases, inflation may rise, and unemployment falls.
Therefore, the correct statement regarding the key difference between B and D would be:
**Unemployment rises in B but falls in D.**