A business cycle refers to the
A) continued expansion in Real GDP.
B) recurrent swings (up and down) in Real GDP.
C) continued decline in Real GDP.
D) period when Real GDP grows at unusually high rates.
E) none of the above
B
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Suppose the federal government increases the unemployment benefits financed by higher income taxes. In this case, which of the following is likely to occur?
a. An increase in the equilibrium real GDP b. A redistribution of disposable income from the employed to the unemployed c. An increase in the interest rate d. An increase in the discount rate charged by the Central Bank e. An increase in the income of the rich and a decrease in the income of the poor
The level of production that minimizes long-run average total costs is referred to as the:
A. economically efficient level of production. B. minimum efficient level of production. C. minimum profitable level of production. D. technically efficient level of production.
Jake opens a pig farm in Idaho. To start his farm, he uses his entire $50,000 of savings from his savings account. The bank was paying him $2,500 interest on his saving. Explain why the $2,500 is one of Jake's costs
What will be an ideal response?
The Taylor rule accurately predicted the changes in the federal funds target during the period
A) when Alan Greenspan was the chairman of the Federal Reserve Board. B) when Paul Volcker was the chairman of the Federal Reserve Board. C) when William McChesney Martin was the chairman of the Federal Reserve Board. D) when Arthur Burns was the chairman of the Federal Reserve Board.