A period of expansion in the business cycle ends when
A) real GDP is equal to potential GDP.
B) the business cycle reaches its peak.
C) the business cycle reaches its trough.
D) real GDP is less than potential GDP.
Answer: B
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At the national level, higher saving rates lead to ________ and higher standards of living.
A. crowding out B. greater investment C. greater current consumption D. slower growth
The higher the reserve ratio, the:
A. greater the money multiplier. B. greater the level of required reserves. C. smaller the money multiplier. D. more money will be created.
In the balance of payments, the buying and selling of real and financial assets is represented in
A. official reserve transactions account. B. current account. C. labor account. D. financial account.
When you pay $8 for salad you ordered for lunch, you are using money as a(n)
A. store of value. B. unit of account. C. investment good. D. medium of exchange.