The idea that the business cycle is recurrent means that
A) declines in economic activity tend to be followed by further declines, and growth in economic activity tends to be followed by more growth.
B) the standard pattern of contraction—trough—expansion—peak occurs again and again in industrial economies.
C) many economic variables to move together in a predictable way over the business cycle.
D) peaks and troughs of the business cycle occur at regular intervals.
B
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One reason that economists usually engage in ________ economic analysis is because the question of fair division of resources is ________ to decide objectively
A) positive; easy B) positive; hard C) normative; easy D) normative; hard
Excess reserves are put to use by a bank when it
a. puts cash in the vault to back existing loans. b. pays off the mortgage on its building. c. sells government securities. d. makes loans to its customers.