In the business cycle, what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle.
B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle.
C) The expansion phase is the period when Real GDP increases beyond the recovery phase.
D) The expansion phase must always come before the recovery phase.
C
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The table above shows data on two variables. If these data were graphed, the slope of the line would be
A) 1/2. B) 4/3. C) 2/3. D) 3/4. E) 2.
Which of the following, other things the same, would make the price level decrease and real GDP increase?
a. long-run aggregate supply shifts right b. long-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left