Which of the following is true of economic expansions?
A) Economic expansions are defined as the period between recessions.
B) Consumption increases but investment falls during periods of economic expansion.
C) Output grows during periods of economic expansion, but the unemployment rate is also high.
D) Governments can correctly predict the length of periods of economic expansion.
A
You might also like to view...
Of all commercial banks, about ________ belong to the Federal Reserve System
A) 10% B) one half C) one third D) 90%
The rational expectations theory indicates that expansionary policy will:
A. stimulate real output in the long run but not in the short run. B. expand real output and employment if the public quickly anticipates the effects of the expansionary policy. C. equalize real and nominal interest rates during lengthy periods of inflation. D. fail to increase employment because individuals will anticipate it and take actions that will offset its impact.
Antitrust authorities are least likely to take action against:
A. conglomerate mergers. B. horizontal mergers. C. interlocking directorates. D. price-fixing.
Accounting profit is equal to
A. total revenue minus explicit costs. B. dividends paid. C. total revenue minus implicit costs. D. total revenue minus dividends and interest.