A standard definition of recession is
A) a period of expansion in many sectors of the economy.
B) an increase in GDP that lasts for at least 6 months.
C) a decrease in GDP that lasts for at least 6 months.
D) an increase in unemployment from one month to the next.
E) a period of time when the unemployment rate exceeds 6.5 percent.
C
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Which of the following is true?
a. both b and c b. the U.S. capital account records international transactions involving purchases of investments c. the U.S. capital account records international transactions involving sales of investments d. U.S. capital refers to the export of real capital only e. U.S. capital outflows result when foreigners purchase U.S. assets
Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit. b. stay in operation in the short-run, but shut down in the long run if demand remains the same. c. shut down. d. none of these.
If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?
a. Deadweight loss b. Inefficiency c. Underproduction d. Each of these are true.
While hurricane Katrina severely disrupted the normal flow of economic activity in the Gulf Coast States in 2005, in the periods following the hurricane
a. the price level fell below 100 b. unemployment in the U.S. spiked c. aggregate demand increased, sparked by the need for reconstruction d. real GDP fell to 1980's levels e. imports rose dramatically