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AP® Macroeconomics

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Moderate

Business Cycle: Next Phase

APMACR-IPH1B1

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

If a country is currently operating at point B on the business cycle model shown above, which of the following statements describes what will happen to its economy next?

A

Unemployment will decrease.

B

Output will expand.

C

Interest rates will increase.

D

Unemployment will increase.

E

The economy will experience negative long-term growth.