A period of time in which the overall business activity is rising at a rapid rate is known as
A. inflation.
B. an expansion.
C. a contraction.
D. hyperinflation.
Answer: B
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Excessive volatility refers to the fact that
A) stock returns display mean reversion. B) stock prices can be slow to react to new information. C) stock price tend to rise in the month of January. D) stock prices fluctuate more than is justified by dividend fluctuations.
If the data show that periods of high economic growth rate accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations
a. True b. False Indicate whether the statement is true or false
With an upward sloping SAS curve, an expansionary monetary policy that affects the price level but not real output could be the result of a shift of:
A. only the SAS curve. B. both the AD and SAS curves. C. neither the SAS curve nor the AD curve. D. only the AD curve.
Which of the following factors would indicate a more elastic demand?
A. The good is a necessity, rather than a luxury. B. The good represents a small fraction of the budget. C. Demand is measured over a longer period of time. D. There are few substitutes for the good.