Question

relating unemployment to the business cycle
the business cycle
at which point in the business cycle would the unemployment rate begin to increase?
1
2
3
4
economic output
time

Explanation:

In the business - cycle, unemployment rate begins to increase when the economy moves from the peak to the contraction phase. Point 2 represents the peak of the business cycle, after which economic output starts to decline and unemployment begins to rise.

Answer:

2