A peak in the business cycle:
A. is a temporary maximum point.
B. occurs when the inflation rate is its lowest.
C. occurs when the unemployment rate is its greatest.
D. is a temporary minimum point.
Answer: A
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Which aggregate measure is used to determine whether or not a country is experiencing a recession?
A) Nominal GDP B) Nominal interest rate C) Real GDP D) Real interest rate E) Gross business inventory investment
Product improvements make it difficult for the statisticians who construct the CPI to distinguish between ________ changes and ________ changes.
A. quantity; quality B. quantity; price C. price; quality D. income; price
When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level
A) negative; short-run B) positive; short-run C) negative; long-run D) positive; long-run
The costs that a firm incurs when it changes its production level are ________ costs.
A. depreciation B. accelerated C. adjustment D. sunk