Which of the following is NOT an outcome of a decline in the business cycle?

a) An increase in cyclical unemployment

b) An increase in real GDP

c) A surplus of labor

d) Social problems, such as despair, crime, and ill health

e) All of the above are outcomes.

b) An increase in real GDP

Explanation:

GDP (Gross Domestic products) represent the market value of goods or services that produced by a certain country in a year.

During the decline in the business cycle, Companies tend to have very little customers. This is why they tend to decrease the amount of goods that they produce.

This means that decline in the business cycle tend to lead to a decrease in real GDP. not an increase.

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