Question

Question 42 5 pts Problem 2 a: Referencing the above business cycle graph, which of the following statements is correct? Regions 1, 2, & 3 of the graph represent Contraction, Recession, & Trough phases, respectively. Regions 4, 5, & 6 represent Recovery, Expansion, & Peak phases, respectively. Regions 7,8,& 9 represent the Long-term Growth Trend, Economic Activity, & Time, respectively. Regions 1, 2, & 3 of the graph represent Recession, Contraction, & Trough phases, respectively. Regions 4, 5, & 6 represent Expansion, Recovery, & Peak phases, respectively. Regions 7, 8, & 9 represent the Long-term Growth Trend, Economic Activity, & Time, respectively. Regions 1, 2, & 3 of the graph represent Recovery, Expansion, & Trough phases, respectively. Regions 4,5. & 6 represent Contraction, Economic Activity, & Peak phases, respectively. Regions 7. 8. & 9 represent the Time, Long-Term Growth Trend & Recession, respectively No answer text provided.

Answer 1

42. Regions 1,2 and 3 of the graph represents Contraction, Recession and Trough phase, respectively. Regions 4, 5 and 6 represents Recovery, Expansion and Peak phases respectively. Regions 7, 8 and 9 represent the long-term growth trend, Economic activity and Time, respectively.

The Business cycle shows the rise and fall in the production or output of goods and services in an economy. There are different stages in this cycle, such as the contraction, recession and trough phases are when the economy goes through a slowdown phase, while recover is a stage where the economy starts to recover from the recession phase and reaches the expansion and finally reach the peak phase where the economy is in its maximum level of growth. Beyond this level, economic indicators stop growing.

43. The size of the labor force is 230

Size of the labor force is the sum of number of people employed and the number of people unemployed. It is the actual number of people available for work and is the sum of employed and the unemployed. Here, given,

total population = 500

Labor force = total population - number of people not in labor force

= 500 - (120 + 150)

=500 - 270

=230

Official unemployment rate is 10%

Unemployment rate is the share of labor force that is jobless, expressed in terms of percentage.

Unemployment rate = unemployed /labor force * 100

= 23/230 * 100

=10%, This implies that 10 percent of the population is unemployed.

44. Given this change, we would say that the U.S dollar has appreciated while the British pound has depreciated.

U.S dollar has appreciated because, before such as change, with $1 only goods worth 0.5 pounds could be bought. But, after the change, with the same $1, goods worth 0.75 pounds could be bought. This shows that the value of dollar has increased, that is, appreciated, while the British pound has depreciated. Because, before the change, with 0.5 pounds, goods worth $1 could be bought, but after the change, for the same quantity of goods, British has pay 0.75 pounds. This shows a decrease in value of British pounds.