Which of the following will most likely occur during the expansionary phase of a business cycle?
a. Real GDP rises, and unemployment falls.
b. Real GDP declines, and inflation rises.
c. Interest rates rise, and the number of business failures rise.
d. Inflation rises, and employment falls.
A
You might also like to view...
For a firm in a perfectly competitive market, average revenue equals
A) average cost. B) the change in total revenue. C) the market price. D) price divided by quantity.
The entry of firms into a perfectly competitive industry causes the supply curve to
A. increase its slope. B. decrease its slope. C. move toward the right. D. move toward the left.
If a market is contestable, then
a. long-run economic profits are minimal due to inefficiency. b. long-run economic profits are zero. c. short-run and long-run economic profits are zero. d. positive economic profits are maximized due to the efficient production spurred by the threat of entry.
"Pork-barrel" legislation that contains funding for hundreds of earmarks throughout numerous states often reflects:
A. the paradox of voting. B. logrolling. C. the benefits-received principle. D. adverse selection.