In the business cycle, what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle.
B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle.
C) The expansion phase is the period when Real GDP increases beyond the recovery phase.
D) The expansion phase must always come before the recovery phase.
C
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The aggregate production function used in the Solow model expresses GDP as a function of:
A) level of technology and total efficiency units of labor only. B) physical capital and level of technology. C) physical capital and total efficiency units of labor only. D) physical capital, level of technology, and total efficiency units of labor.
The goal of the World Bank is to
A) sell the government securities of member nations on the open market. B) supervise exchange rate stability. C) help finance economic development. D) supervise the activities of the central banks of member nations.
The domestic currency is said to be ________ if it has appreciated at a lower rate than the difference between the domestic inflation rate and the higher foreign inflation rate
A) undervalued B) overvalued C) appreciated D) risky
Which of the following is a free rider?
A. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property. B. Fred watches many public television programs, but he has never sent in a contribution. C. Barry steals candy from the store where he works. D. Betty regularly rides public transportation.