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AP® Macroeconomics

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Business Cycle Model: Expansionary Period

APMACR-$FP7LN

Created for Albert.io. Copyright 2016. All rights reserved.

On the graph shown above, if the economy moved from point A to point B, which of the following statements would be true?

A

Unemployment would be increasing and real output would be decreasing.

B

Unemployment would be decreasing and real output would be decreasing.

C

Unemployment would not change and real output would be increasing.

D

Unemployment would be increasing and real output would be increasing.

E

Unemployment would be decreasing and real output would be increasing.