During the expansion phase of the business cycle
A) employment decreases. B) unemployment increases.
C) production increases. D) income decreases.
C
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Price discrimination refers to:
a. charging different prices to different groups on the basis of production cost differences. b. charging different prices to different groups without a basis for doing so because of differences in production costs. c. the ability of a firm to charge a price in excess of marginal cost. d. consumer bargain hunting.
If the multiplier is greater than 1 an initial (autonomous) decrease in aggregate demand will be
A. Equal to the eventual decline in spending. B. Offset by an increase in planned investment. C. Much larger than the eventual decline in spending. D. Much smaller than the eventual decline in spending.
Some economists are concerned that the financial rescue provided by the TARP will encourage financial investors and firms to take on greater risks in the future. This is an example of:
A. moral hazard. B. adverse selection. C. a prisoner's dilemma. D. shadow banking.
Technology is a primary source of economies of scale for many firms.
Answer the following statement true (T) or false (F)