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Suppose an observer of an economy notices that over the past 12 months the unemployment rate has fallen from 8.5 to 7.5 and, during the

Suppose an observer of an economy notices that over the past 12 months the unemployment rate has fallen from 8.5 to 7.5 and, during the same time, the rate of growth in real GDP has been positive. From this information the observer should conclude that A) inflation is not occurring. B) a recession is in progress. C) an expansion is occurring in the economy. D) a trough in the business cycle will soon be reached

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