A period of expansion in the business cycle ends when
A) the business cycle reaches its peak. B) the business cycle reaches its trough.
C) real GDP is less than potential GDP. D) real GDP is equal to potential GDP.
A
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Data from the United States and the United Kingdom show that the short-run Phillips curve exhibits
A) positive slopes in both nations. B) shifts that occur every five years or so. C) a great deal of shifting. D) stability with shifts occurring only when there is an internal change of government. E) stability with shifts occurring only when external forces are strong.
Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots
A) Orange Rose; Blue Violet B) Blue Violet; Orange Rose C) Blue Violet; Blue Violet D) Orange Rose; Orange Rose