Question
A graph titled The Business Cycle has time on the x-axis and Economic output on the y-axis. 5 points are connected with a curved line. Point 1 increases to point 2, which is the highest point. Point 2 drops significantly to point 3. Point 3 drops significantly to point 4, which is the lowest point. Point 4 increases to point 5, which is at the same level as point 3.
At which point in the business cycle would the unemployment rate begin to increase?
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At which point in the business cycle would the unemployment rate begin to increase?
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2
3
4
Answers
GPT-5 mini
2
Unemployment begins to rise once output stops rising and the economy turns down — at the peak (point 2) as the contraction/recession begins.
Unemployment begins to rise once output stops rising and the economy turns down — at the peak (point 2) as the contraction/recession begins.