The term "business cycle" most closely refers to the
A) fluctuating profits of firms.
B) fiscal year.
C) accounting period used by firms.
D) alternating periods of expansions and recessions.
D
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Economists often focus on average behavior because it is easier to predict
a. True b. False
The short-run Phillips curve suggests that ____ rates of unemployment can be traded off for ____ rates of inflation
a. lower; higher b. greater; relatively high c. less; relatively low d. less; relatively high
As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see
a. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. c. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.
The income approach to measuring GDP ________.
A. focuses on how income is spent B. uses the payments paid to the four resources used to produce goods and services to estimate GDP C. adds up all household expenditures to calculate aggregate income and GDP D. ignores how income is earned and focuses instead on how it is used