Question 8 of 50 > In the United States, recessions are typically associated with a(n): ? falling unemployment rate. ? decrease in the number of people living in poverty. ? decrease in the percentage of Americans with health insurance. ? increase in corporate profits.
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Step 1: Recessions are periods of economic decline. Show more…
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"8. After experiencing a recession for the past two years, the residents of Albernia were looking forward to a decrease in the unemployment rate. Yet after six months of strong positive economic growth, the unemployment rate has fallen only slightly below what it was at the end of the recession. How can you explain why the unemployment rate did not fall as much although the economy was experiencing strong economic growth? (Hint: Reread the For Inquiring Minds box 0n Okun's law for help with answering this question.)"
Prashant B.
During the recession phase of a business cycle, which of the following is likely to increase? a. the unemployment rate b. the price level c. economic growth rates d. the labor force e. wages
Poverty vs. Unemployment Based on data from 1988 through 2003, the poverty rate (percentage of households with incomes below the poverty threshold) in the U.S. can be approximated by $p(x)=-0.12 x^{2}+2.4 x+3.2$ percentage points $\quad(4 \leq x \leq 8)$ where $x$ is the unemployment rate in percentage points. ${ }^{44}$ a. Use technology to complete the following table which shows the average rate of change of $p$ over successive intervals of length $\frac{1}{2}$. (Round all answers to two decimal places.) $$ \begin{array}{|r|l|l|l|l|l|l|} \hline \text { Interval } & {[5.0,5.5]} & {[5.5,6.0]} & {[6.0,6.5]} & {[6.5,7.0]} & {[7.0,7.5]} & {[7.5,8.0]} \\ \hline \begin{array}{r} \text { Average } \\ \text { Rate of } \\ \text { Change of } p \end{array} & & & & & & \\ \hline \end{array} $$ b. Interpret your answer for the interval $[5.0,5.5]$, being sure to indicate the direction of change and the units of measurement. HINT [See Example 4.] c. Multiple choice: As the median household income rises, the poverty rate (A) increases (B) decreases (C) increases, then decreases (D) decreases, then increases d. Multiple choice: As the unemployment rate increases, the effect on the poverty rate is (A) more pronounced (B) less pronounced
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