A significant decline in real GDP is called a

a. recession.
b. depression.
c. peak.
d. trough.


a. recession.

Economics

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When cash is deposited in a checkable-deposit account at a bank, there is a(n)

A. increase in the bank's liabilities. B. increase in the money supply M1. C. decrease in the money supply M1. D. increase in the bank's net worth.

Economics

Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double:

A. 1 time. B. 1.5 times. C. 3.5 times. D. 7 times.

Economics

If nominal GDP is $848 billion, and velocity of money is 4, how much is the money supply? If the GDP price index is 200, what is real GDP here?

What will be an ideal response?

Economics

Carefully explain if the following statements are true, false, or uncertain

a. If average cost is increasing, marginal cost must be increasing. b. If there are diminishing returns, the marginal cost curve must be positively sloped. c. Marginal costs decrease as output increases because the firm can spread fixed costs over more units.

Economics