A procyclical variable ________
A) moves up during expansions and down during contractions
B) moves up during contractions and down during expansions
C) moves in the opposite direction of aggregate economic activity
D) all of the above
E) none of the above
A
You might also like to view...
Comparing the AS-AD model and the Phillips curve, we see that
A) they both are graphed as a relationship between the rate of inflation and the unemployment rate. B) the AS-AD model uses the price level and the Phillips curve uses the rate of inflation. C) the AS-AD model is graphed as a relationship between the inflation rate and the rate of real GDP. D) the AS-AD model uses the price level and the Phillips curve uses real GDP. E) the Phillips curve is graphed as a relationship between the price level and the unemployment rate.
Improvements in technology shift the per-worker production function downward
a. True b. False Indicate whether the statement is true or false
Correcting a market with an externality through taxation is ________ correcting it through a quota.
A. less efficient than B. more efficient than C. just as efficient as D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
The total fertility rate necessary to keep the population constant is approximately equal to:
A. 1.0. B. 1.5. C. 2.1. D. 3.0.