3. Suppose the National Bureau of Economic Research announces that the economy has been in a recession for the past year. What effect might this announcement have on the economy? A) Employers will trim payrolls in an effort to cut costs in the face of decreased demand for their products. B) Businesses will invest heavily in plant and equipment. C) Businesses will add shifts to prepare for the upcoming recovery. D) The Federal Reserve will increase interest rates to fight the recession.
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