The trough of a contraction is
A) the point in time at which the level of national business activity reaches a minimum before expanding again.
B) the point in time at which the level of national business activity reaches a maximum before contracting again.
C) the rate at which the level of business activity is declining.
D) an external shock that causes economic activity to decline.
Answer: A) the point in time at which the level of national business activity reaches a minimum before expanding again.
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Which of the following is not considered a factor contributing to economic growth?
a. Growth in the quantity and quality of labor resources used b. Growth in physical capital inputs (machines, tools, buildings, and inventories) c. Growth in the money supply relative to the growth of final goods and services d. Government protection of property rights
The term federal reserve notes refers to coins minted by the U.S. Treasury
Indicate whether the statement is true or false
The second largest source of income for the federal budget is
A. personal income taxes. B. corporate income taxes. C. payroll taxes. D. inheritance taxes.
According to Okun's law, when cyclical unemployment is negative, the output gap:
A. is positive. B. equals the rate of cyclical unemployment. C. equals zero. D. is negative.