How many quarters (3-month periods) must the real GDP decline to have the economy considered to be in a recession?
A. 1
B. 2
C. 3
D. 4
Answer: B
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The table below shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.RGDPConsumption$600$590610598620606630614640622650630660638If investments were fixed at $16, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $630 initially. If government purchases were then raised from $0 to $10 and lump-sum taxes also increased from $0 to $10, other things constant, the equilibrium real GDP would become
A. $630. B. $650. C. $660. D. $640.
The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the
A) factor proportions explanation of the sources of comparative advantage. B) specific factor theory of comparative advantage. C) monopolistic competition theory of comparative advantage. D) scale economies theory of comparative advantage. E) basis of the non-dumping legislation.
One baseline assumption that economists make about consumer behavior is that:
A. people are rational utility maximizers. B. people will always choose short-term benefits to longer-term payoffs. C. people will always choose what makes them happiest. D. people are unpredictable.
Which of the following would cause the money supply in the United States to expand?
a. A decrease in reserve requirements. b. An increase in the discount rate. c. The sale of U.S. government bonds by a Federal Reserve bank. d. An increase in the world supply of gold.