What is a business cycle and what are its phases and turning points?
What will be an ideal response?
The business cycle is a periodic but irregular up-and-down movement of total production and other measures of economic activity. A business cycle has two phases: recession and expansion. The turning points are the peak and the trough. A business cycle runs from a trough to an expansion to a peak to a recession to a trough and then back to an expansion.
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The ________ specializes in making long-term loans for capital investment projects that do not have private financial support
A) International Monetary Fund B) Federal Reserve Bank C) World Bank D) European Central Bank
A predominant view among Federal Reserve officials is that
A) the Phillips curve is unimportant. B) the Phillips curve helps us forecast inflation. C) the Phillips curve helps us forecast the nominal interest rate. D) the Phillips curve does not exist in the data.
Uncertainty is the result of ________ information that is often associated with ________ events.
A) incomplete; known B) incomplete; random C) complete; random D) complete; known
We say that money is a medium of exchange because it represents:
A. a certain amount of purchasing power held over time. B. something you can use to purchase goods and services. C. something you can directly offer, like any good or service, in exchange for some good or service you want. D. a standard unit of comparison.