According to the Austrian business cycle theory, a key feature of a deflationary depression is A) an increase in money and credit B) unrepayable debts lead to financial system losses C) businesses that are too big to fail must be subsidized D) higher prices
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According to the Austrian business cycle theory, a key feature of a deflationary depression is
A) an increase in money and credit B) unrepayable debts lead to financial system losses C) businesses that are too big to fail must be subsidized D) higher prices
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- According to the Austrian theory of the business cycle, the following is false A. A cluster of sudden errors by previously successful entrepreneurs is revealed by the recession B. Overall prices always fall during a recession C. An inflationary boom is inevitably followed by a recession D. The prices of consumer goods rise relative to the prices of capital goods during the recessionAn expansion or boom is the period in the business cycle from a: a) peak to a peak b) trough up to a peak c) peak down to a trough d) trough to a troughWhich of the following economic environments would most likely be associated with a recession? Unemployment falling to 30-year low Unemployment increasing from 5% to 9% during the year New businesses opening in record numbers while new housing starts reach a 10-year high GDP growing at an annual rate of 4.2%
- In 2010, the country of Utopia experienced the highest contraction of their economy at 10% in the previous 20 years before a new expansion phase. In 2010, the economy of Utopia... Had reached a peak. Had reached a trough. Was in an expansion phase. Was in a recovery phase.The expected real rate of interest is 0.6%, actual inflation over the last year was 3%, and expected inflation over the next year is 7.4%. What is the current level of nominal interest rates (in %) predicted by the Fisher equation?Which of the following statements is true? A depression is a mild and relatively brief recession. The expansions and contractions of real-world business cycles last varying lengths of time and often differ in magnitude. The timing of business fluctuations is regular and therefore easily predictable. During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.
- Suppose that over the last three years, there has been a 10% increase in real GDP, but a 5% increase in nominal GDP, we might conclude thata) The economy has entered a recession.b) The price level has increased, with 5% inflation.c) The price level has decreased, with 5% deflation.d) The economy has experienced a combination of low growth and inflation.According to the Real Business Cycle theory, a) Business cycles are originated by changes in real wages b) Business cycles are originated by productivity shocks c) Business cycles are originated by demand fluctuations d) Business cycles are originated by the real demand for moneyDeflation is particularly bad for an economy in recession for all of the following reasons EXCEPT a-with deflation people spend less expecting prices to be lower in the future b- the rising prices makes goods more expensive c- with deflation the value of assets declines while the value of loans does not - this lowers wealth and further depresses spending
- What common rule of thumb do economists use to define a recession? A decline of 5% in GDP A decline of 10% in GDP One quarter of negative GDP growth Two quarters (six months)of negative GDP growthIntroduction to Macroeconomics: End of Chapter Problem 18. According to By the Numbers, the personal savings rate trended upward during the last five economic recessions. Personal savings might increase during a recession because of high unemployment and income anxiety. an increase in interest rates. an increase in the prices of the products. an increase in per capita income. Anna Graham is the new Treasury Secretary, and she is trying to interpret some inflation measures. In year one, the aggregate price level increased by 7% and in year two, the aggregate price level decreased by 1%. Which statement accurately characterizes the changes in the nation's price level? O In year one, the economy is experiencing inflation. In year two, the economy is also experiencing inflation. O In year one, the economy is experiencing inflation. In year two, the economy is experiencing deflation. In year one, the economy is experiencing deflation. In year two, the economy is experiencing disinflation.…Which of the following is not true about real business cycle macroeconomics: (a) is based on econometric and statistical modeling. (b) describes how productivity shocks affect the business cycle (c) determines that neither fiscal nor monetary policy is very important for macroeconomic performance (d) requires dynamic general equilibrium modeling