In the business cycle, what immediately precedes the time when real GDP is falling?
A) depression B) peak C) recession D) expansion E) trough
B
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An increase in a consumer’s income will always increase the demand for a good.
Answer the following statement true (T) or false (F)
Which of the following is NOT a nontransaction deposit?
A) a money market deposit account B) a certificate of deposit C) a savings account D) a NOW account
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. In Country II we can conclude that the:
A. least-wealthy 40 percent of the population received 20 percent of the economy's income. B. least-wealthy 20 percent of the population received 25 percent of the economy's income. C. richest 20 percent of the population received 20 percent of the economy's income. D. richest 40 percent of the population received 35 percent of the economy's income.
Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A. greedy business people behaving in an inappropriate manner. B. firms have not yet exited the industry. C. marginal cost pricing. D. market failure.