The standard definition of "recession" is
A) a period of a positive frictional unemployment rate.
B) two consecutive quarters of falling Real GDP.
C) the lowest point in a business cycle.
D) a period of negative inflation.
B
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If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good, then the demand is said to be:
a. perfectly elastic. b. income elastic. c. unit-elastic. d. inelastic. e. perfectly inelastic.
The answer is: "Policymakers are not aware of changes in the economy as soon as they happen." What is the question?
A) What is the wait-and-see lag? B) What is the data lag? C) What is the effectiveness lag? D) What is the transmission lag? E) none of the above
If the economy is self-regulating, then it follows that
A) recessionary and inflationary gaps are temporary economic states. B) wages will fall when the economy is in a recessionary gap. C) wages will rise when the economy is in an inflationary gap. D) the economy is always in long-run equilibrium. E) a, b and c
During recessions, automatic stabilizers work to reduce government expenditures and increase government revenues.
Answer the following statement true (T) or false (F)