The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle
A) expansion.
B) peak.
C) trend.
D) recession.
E) trough.
A
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The unemployment rate generally falls during ________ in the business cycle
A) a peak B) a recession C) a trough D) an expansion
Refer to Figure 15-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) a decrease in real GDP. B) an open market sale of Treasury securities by the Federal Reserve. C) an increase in the required reserve ratio by the Federal Reserve. D) an increase in the price level.
Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8 . Holding other things constant and assuming both goods are complements, the acquiring firm should
a. lower prices on both goods with a larger decrease in Firm A's good b. lower prices on both goods with a larger decrease in Firm B's good c. Lower prices on both goods by the same amount d. Lower prices on both goods
Frictional unemployment always exists because
A. recessions are necessary sometimes to keep the economy healthy. B. the government has never instituted full employment policies. C. some workers quit their jobs without having another job already lined up. D. workers are lazy and refuse to accept certain jobs.