Recessions are commonly defined to occur
A) whenever unemployment increases.
B) when growth in real GDP decreases for two consecutive quarters.
C) when growth in real GDP is negative for two consecutive quarters.
D) when the unemployment rate exceeds 6 percent.
C
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Economists use elasticity to measure the responsiveness of quantity to a change in price rather than the slope of the demand curve because elasticity is
A) independent of the units of measurement. B) dependent on the units of measurement. C) easier to calculate. D) harder to calculate. E) always negative whereas the slope is always positive.
If an economy operates on its production possibilities frontier, the natural unemployment rate must be:
a. zero. b. positive. c. negative. d. at 1 percent. e. at 5 percent.
What is the meaning of the term "crowding out"?
a. The exclusion of private investors in the foreign exchange market due to a central bank fixing of the exchange rate. b. A lower consumption level because of high and accelerating inflation. c. A reduction in private borrowing due to the government-induced increase in the real risk-free interest rate. d. None of the above.
Quantity Demanded
What will be an ideal response?