Correct answers are:
1) A period of expansion is when an economy exhibits increasing levels of production and spending.
A trough occurs at the end of the contraction phase and the beginning of the expansion phase.
A contraction phase is when an economy exhibits decreasing levels of production and consumption.
2) Lower, lower, downbeat
Crest, Trough
3) During the early stage of economic expansion, finding a job generally tends to be easier, both manufacturers and retailers generate higher levels of production and output.
7. The business cycle What Is a Business Cycle and How Does It Affect You? The term business cycle, or economic cycle,...
True false 7. The period in the business cycle from a trough up to a peak is a contraction. The rate of change in economic activity is used to assess whether an economy is expanding or contracting. 8.
1. Your friend asked you what a business cycle means. You tell them that a business cycle reflects changes in real GDP. Then you tell them that the stages of a business cycle in correct order are: a. expansion, trough, recession, peak b. expansion, peak, recession, trough c. trough, expansion, recession, peak 2. The point of a fluctuation at which economy turns from a peak to a trough is called a/an ________. a. recession b. Peak c. Expansion 3. Economic...
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...
All societies experience short-run economic fluctuations around long-run trends. These fluctuations are irregular and largely unpredictable. When recessions do occur, real GDP and other measures of income, spending, and production fall, and unemployment rises. Any event or policy that raises consumption, investment, government expenditures, or net exports at a given price level increases aggregate demand, vice versa. Questions a) Which variable, investment or consumer spending has more affect on the business cycle? Why? (6 points) b) Name two macroeconomic variables...
(16) Which of the following pairs of economic concepts are usually associated with each other? Stagflation and cost-push inflation Stagflation and demand-pull inflation Economic expansion and cost-push inflation Stagflation and the wage-price spiral (17) The Y variable in the formula for the quantity theory of money stands for the total output of the economy. the price level. the money supply. the equilibrium intersection of supply and demand. (18) A price index in one year...
1. Key facts about economic fluctuations The following graph approximates business cycles in the United States from the first quarter of 1947 to the third quarter of 1951. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). 2170 REAL GDP (Billions of dollars) 1770 1947 1948 1950 1 1951 1949 YEAR Source: "Current-dollar and Real GDP," Bureau of Economics Analysis, last modified May 1, 13, accessed May 15, 13,...
5. If data indicate the economy is in recession and members of Congress are working to pass legislation to encourage economic growth, which of the following has almost certainly occurred? a. Realization of results b. Recognition of change in the economy c. Implementation of policy d. Analysis of policy's effectiveness 6. Which of the following is a significant decline in general economic activity over an extended period that includes declining real income and rising unemployment? a. A business cycle b....
1. Key facts about economic fluctuations The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known...
4 pts Question 20 The National Bureau of Economic Research (NBER) is the organization that determines the official start and end dates of a recession. This week, the NBER announced that the US has officially entered a recession starting after February 2020, ending the longest expansion on record that started in June 2009 (the previous longest expansion from 1991 to 2001 was 8 months shorter). right before the Great Recession According to the NBER, December 2007 was the business cycle...
Economics is the study of how people make money. run a business. invest. make choices using limited resources. Flag this Question Question 21 pts The opportunity cost of an activity is zero if you choose the activity voluntarily. the amount of money spent on the activity. the value of the best alternative not chosen. the sum of benefits from all of the alternatives not chosen. Flag this Question Question 31 pts At equilibrium price, the quantity demanded is _____ the...