What is a business cycle? What are its phases and turning points?
What will be an ideal response?
A business cycle is the periodic but irregular up-and-down movement in production and jobs. It has two phases and two turning points. As the economy slows and the growth in real GDP turns negative, the economy enters the recession phase of the business cycle. At the bottom of the recession phase is one turning point, the trough. As the economy moves through the trough, it enters the expansion part of the business cycle during which real GDP grows. Finally, as the economy reaches its high point and swings from an expansion to a recession, the economy passes through the other turning point, the peak.
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Interdependent decision making on price, quality, or advertising is characteristic of
a. perfect competition b. monopolies c. oligopolies d. monopolistic competition e. both oligopolies and monopolistic competition
Ceteris paribus, if the price of a digital camera rises, then we can expect
A. An increase in the quantity demanded of digital cameras. B. A decrease in the quantity demanded of digital cameras. C. A decrease in the demand for digital cameras. D. An increase in the demand for digital cameras.
A firm that does business in many different countries is called a __________________.
Fill in the blank(s) with the appropriate word(s).
If the marginal cost of producing a public good is less than society's total willingness to pay per unit, then
A. the optimal amount of the public good is being produced. B. more than the optimal amount of the public good is being produced. C. less than the optimal amount of the public good is being produced. D. the amount of output being produced could be either greater than or less than the optimal amount.