Use the NBER data in Table 8.1 in the textbook on U.S. business cycle turning points to calculate:
a) the shortest business cycle from peak to peak; b) the shortest business cycle from trough to trough; c) the longest business cycle from peak to peak; and d) the longest business cycle from trough to trough.
(a) The shortest business cycle from peak to peak is 17 months, which extended from August 1918 to December 1919. This includes 7 months of contraction followed by 10 months of expansion.
(b) The shortest business cycle from trough to trough is 28 months, which extended from July 1980 to October 1982. This includes 12 months of expansion followed by 16 months of contraction.
(c) The longest business cycle from peak to peak is 128 months, which extended from July 1990 to March 2001. This includes 8 months of contraction followed by 120 months of expansion.
(d) The longest business cycle from trough to trough is 128 months, which extended from March 1991 to November 2001. This includes 120 months of expansion followed by 8 months of contraction.
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The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the marginal social benefit from the 100th pound of chocolate each day?
A) $1.50 per pound B) $1.00 per pound C) $0.50 per pound D) None of the above answers is correct.
A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left