As a general rule, a recession occurs when there is a six consecutive month fall in:
a. nominal GDP.
b. real GDP.
c. the price level.
d. the trade balance.
b
You might also like to view...
Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will
A. neither export nor import the product. B. import some units of the product. C. not produce the product. D. export some units of the product.
Marginal damages
A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.
In new classical economics, the change in output caused by a "price-level surprise":
A. is shown as a shift of the long-run aggregate supply curve. B. does not alter the rate of unemployment, even in the short run. C. is soon reversed through a shift of the short-run aggregate supply curve. D. permanently changes the rate of unemployment.
Marginal cost is ________ average variable cost when ________.
A. equal to; average total cost is minimized B. less than; total cost is maximized C. equal to; average variable cost is minimized. D. greater than; average fixed cost is minimized