Answer to Question #37184 in Macroeconomics for kuna
you expect unemployment to tend to fall during an economy's expansionary phase and to rise during a contractionary phase.Justify your answer.
Answer on Question#37184-Economics - Macroeconomics.
Contractionary Phase is a period in which real GDP is declining, that's why it is associated with declining inflation rates and increasing unemployment rates. Expansionary Phase is a period in which real GDP is growing, that's why it is associated with increasing inflation rates and declining unemployment rates.