Answer the following statements true (T) or false (F)
1. Inventory depletion can lead to increased production.
2. During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship.
3. Population growth and wars are examples of external forces affecting the economy’s cyclical movements.
4. As the economy moves into the trough of the business cycle, there is a sizable reduction in the output of capital goods.
5. The roughly coincident indicators have their upward and downward turning points prior to the upward and downward turning points of real GDP.
1. TRUE
2. TRUE
3. TRUE
4. TRUE
5. FALSE
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Schumpeter asserts all of the following except
(a) A strong middle class fosters growth in society's entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors.
The ________ can change the quantity of money in the economy.
A. Treasury Department B. Federal Reserve C. Office of the Comptroller of the Currency D. Congress