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Which of the following describes the effect of the business cycle on the inflation rate and the unemployment​ rate?A.The unemployment rate increases and the inflation rate falls during recessions.B.The unemployment rate falls and the inflation rate falls during recessions.C.The unemployment rate increases and the inflation rate increases during expansions.D.The unemployment rate increases and the inflation rate falls during expansions.

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15-4 If the fed decides to engage in an open market operation to increase the money supply, what will it do?A) sell treasury bonds, bills or notes on the bond marketB) buy treasury bonds, bills or notes on the bond marketC) increase the required reserve ratioD) increase the fed funds rate

Division of IncomeBillionsof dollarsWages$10,870Interest787Rent760Profit3,357Profit of sole proprietors1,579Profit of corporations1,778​Taxes, depreciation and statistical discrepancy4,783The image is a pie chart that shows the division of Gross domestic Product (GDP), measured in terms of income, into its different components: wages, interest, rent, profits of sole proprietors and corporations, and taxes. Wages account for about 54 percent, and taxes account for 23 percent of GDP. Profits of corporations account for 9 percent, and profits of sole proprietors account for 8 percent of GDP. Interest accounts for 4 percent, and rent accounts for 4 percent of GDP.Wages 53%Interest 4%Rent 4%Profits of sole proprietors 8%Profits of corporations 9%Taxes etc 23%The table and figure show GDP measured in terms of the total income received by households. Use the table and figure to help determine which of the following statements about the division of income is false.A.The largest component of income received by households is wages.B.Wages are slightly more than three times as large as the profits received by sole proprietors and the profits received by corporations combined.C.Profits include the profits of sole proprietorships and profits of corporations.D.Gross domestic income is measured precisely.

Consider the following values of the consumer price index for 1996, 1997, and 1998: The inflation rate for 1997 was equal to

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