Economists refer to fluctuations in output as the "business cycle" because movements in output are regular and predictable True/False

Q: What are the two biggest recessions in terms of length and magnitude from the graph, the shaded…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Since 1965, the U.S. economy has experienced how many economic contractions?

A: Since 1965, the U.S. economy has witnessed seven economic contractions so far.

Q: What stage in the business cycle does the shift in Aggregate Demand represent?

A: Aggregate demand refers to the total expenditure that all the sectors of the economy are planning to…

Q: Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What…

A: The money supply refers to the flow of money into the economy or the supply of money into the…

Q: A recession is a decline in    the inflation rate that lasts six months or longer the unemployment…

A: The economic activities are the activities which need to be efficient in functioning so that they…

Q: Output Unemployment A Y>Y* Uu* Y=Y* u=u*

A: u=unemployment rate u*=natural rate of unemployment Y=output Y*=full employment output

Q: Which of the factors below will NOT be a feature of economic recessions? Higher unemployment Low…

A: Answer: Correct option: C (Low government spending) Explanation: A recession refers to the period…

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic…

A: Real business cycle: Real business cycle refers to business cycle fluctuations to a large extent;…

Q: Suppose that a decrease in the demand for goods and services pushes the economy into recession. What…

A: The demand is the main factor that determines the developments in the economy. The increased demand…

Q: The period during which real output is growing during a business cycle is called

A: ANS Any economy pivots around two phases of business cycles, namely, a phase of expansion & a…

Q: a)Keynesian economists believe that the business cycle is caused by external factors, such as…

A: : Models of economics: A money related model is a smoothed-out variation of reality that grants us…

Q: Which type of inflation is usually most pronounced during the expansionary phase of the business…

A: Expansionary phase of business cycle refers to the situation when real GDP is increasing.

Q: According to early classical macroeconomics, unemployment

A: Unemployment is referred to as a situation which occurs when individuals or workers who want to work…

Q: Use the extracts and your knowledge of economics to assess the view that when an economy experiences…

A: Negative economic shock is an unexpected event that affects the economy in a negative way, by…

Q: business cycle

A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…

Q: The phase of the business cycle in which real GDP declines is called: a recovery. the trough. a…

A: Business cycle: Also known as economic cycle or trade cycle, business cycle are the fluctuation in…

Q: According to the Real Business Cycle theory, a) Business cycles are originated by changes in real…

A: Business cycles are being marked by the alternate phases of expansion and contraction in aggregate…

Q: When real GDP declines during a recession, what typically happens to consumption, investment, and…

A: In an economy, any change in the real GDP will have a significant impact on the economic variables…

Q: Discuss money supply and inappropriate government policies as causes of economic fluctuations

A: Economic fluctuations are caused due to recession and inflation.

Q: Business cycles are     a short run phenomenon     a long run phenomenon     predictable…

A: Business cycles are also known as trade cycles. It has six stages namely expansion, peak, recession,…

Q: According to Keynesian business cycle theory, what should the government do in response to a…

A: A recession is a situation in which economic activities start to decline in the economy of a…

Q: business cycle

A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…

Q: Which of the following correctly shows the steps needed to calculate the inflation rate?

A: The consumer price index is used in measuring the price level. The consumer price index converts the…

Q: What were the causes and consequences of the Great Recession?

A: The great depression as the name itself suggest is one of the greatest event in the history. It…

Q: observed correlation between the price level and real GDP may be low because

A: The price level in an economy is negatively correlated to the real GDP.

Q: Keynesian economists argue that facing an economic recession. and are the surest way to ensure full…

A: The economies around the world tend to depend upon the working of the government, and also the…

Q: Give a solution to fix a serious national recession

A: The recession is a situation of declining the Gross Domestic Product of the economy due to the…

Q: as you analyze the dismal United States economic environment, you notice that unemploymentis…

A: All the countries goes through changes and fluctuations in the economic activities. Sometimes, the…

Q: Use the graph to answer the question that follows. Real GDP Potential real GDP Time The government…

A: Potential GDP is defined as the maximum production that an economy can reach with high employment…

Q: Explain why a supply shocks is most of the time believed to be temporary? And does not result in…

A: A supply usually shock occurs when the supply of a commodity or service suddenly increases or…

Q: What actions might a business owner take during times of economic contraction? In other words, how…

A: Business cycles represent those periods of cyclical fluctuations that occur in an economy in terms…

Q: Which of the following are business cycle theories that regard fluctuations in aggregate demand as…

A: The business cycle refers to the fluctuations in the gross domestic product of an economy during the…

Q: To what degree are fluctuations in the business cyclepredictable?

A: The business fluctuations include depression, recovery, boom and recession. The new Keynesian…

Q: Examine the table below. According to the data in the table what phase of the business cycle is the…

A: Answer - The economy is currently in peak phase which means that higher growth rate high rate if…

Q: Why do some economists believe that better inventory control software may help to reduce the…

A: Recession is a descending tendency in the business cycle considered by a failure in manufacturing…

Q: Macroeconomists studies all of the following issues except: a. The determinants of inflation b. The…

A: The subject of economics can broadly be categorized as Macroeconomics and Microeconomics on the…

Q: In times of recession, it is the banks who ultimately decide whether a particular business survives…

A: evaluate the effectiveness of current monetary policies Critics argue that stimulus measures like…

Q: The business cycle will alternate, if two or more of the components of aggregate demand decrease or…

A: The business cycle alludes to a withdrawal and extension of inflation, GDP, and joblessness. It…