Answer the following questions:
a. What is meant by the term "business cycle"?
b. What economic indicators would indicate where the economy is in the business cycle? Explain.
c. Give the four phases of the business cycle in their order of occurrence.
d. What criterion must be met for our economy to be officially in a recession?
a. The business cycle is the periodic increases and decreases of economic aggregates such as real GDP.
b. Unemployment rises during recessions and falls during booms, and real GDP falls during recessions and rises during booms.
c. expansion, boom, contraction, recession
d. two consecutive quarters of negative growth in real GDP
You might also like to view...
As of the end of 1994, which of the countries in our survey had the closest match in size between its stock and banking markets?
A) The United Kingdom B) The United States C) Japan D) Germany
Currency devaluations hurt consumers because they make imports ________ expensive
a. Less b. More c. All of the above d. None of the above