The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0The economy experienced an expansion that lasted from:
A. May 1954 to April 1958.
B. July 1953 to May 1954.
C. July 1953 to April 1957.
D. May 1954 to April 1957.
Answer: D
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When considering the aggregate demand curve, the wealth effect, interest rate effect and international trade effect reinforce each other.
Answer the following statement true (T) or false (F)
If an economy produces 3 million oranges that sell for $0.25 each and 100,000 cars that sell for $25,000 each, then when the market value of total output is calculated:
A. oranges receive a smaller weight than cars. B. oranges receive the same weight as cars. C. oranges receive a greater weight than cars. D. the market value of oranges is excluded.