Which of the following is true of a recession?
a. It is typically accompanied by inflation and investment growth.
b. It lasts for more than two years on an average
c. It is typically longer than periods of expansion.
d. It begins after an expansion has peaked.
e. It continues as long as actual output exceeds the potential output.
d
You might also like to view...
Refer to Table 23-3. Given the consumption schedule in the table above, the marginal propensity to consume is
A) 0.1. B) 0.3. C) 0.6. D) 0.9.
If workers received a 5 percent wage increase and the rate of inflation was 10 percent, then their real wage:
A. decreased. B. remained constant. C. increased. D. equaled the nominal wage.
A perfectly competitive system results in an efficient allocation of resources among firms and an equal distribution of final products among households.
Answer the following statement true (T) or false (F)
The percentage change in one's real income can be approximated by:
A. The percentage change in price level divided by the percentage change in nominal income B. The percentage change in nominal income divided by the percentage change in price level C. The percentage change in price level minus the percentage change in nominal income D. The percentage change in nominal income minus the percentage change in the price level