What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?
What will be an ideal response?
Changes in total spending (aggregate demand) are what generally cause changes in the business cycle. The four phases of a single business cycle is a peak, recession, trough and an expansion. The problems associated with a recession are cyclical unemployment and slow growth. The problem with an expanding economy is (demand-pull) inflation.
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NAFTA or GATT disagreements are settled at the United Nations
Indicate whether the statement is true or false
Which of the following pairs is the most likely to exhibit a direct relationship?
A. The price of gasoline and the amount of gasoline that people purchase. B. Cholesterol levels and the likelihood of developing heart disease. C. Outdoor temperature and heating oil sales. D. Annual income and weekly pawn shop visits.
Health Care is not like other goods and services because
A. people go to the doctor to find out what is wrong, whereas they get other services knowing more about what they need. B. there is no motive to consume more than is economically efficient. C. people do not have to pay for it. D. we tend to like to go to the doctor and do it for enjoyment, whereas we hate going to the dentist.
Until recently, many developing countries
A) encouraged foreign direct investment but discouraged foreign portfolio investment. B) sealed themselves off from foreign investment. C) were quite open to foreign investment. D) encouraged foreign portfolio investment but discouraged foreign direct investment.