What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?
Changes in total spending (aggregate demand) are what generally cause changes in the business cycle. The four phases of a single business cycle is a peak, recession, trough and an expansion. The problems associated with a recession are cyclical unemployment and slow growth. The problem with an expanding economy is (demand-pull) inflation.
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Assume that the graphs show a competitive market for the product stated in the question below.
Select the graph above that best shows the change in the market following a tax placed on the suppliers in the market.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
An increase in the saving rate results in a higher steady state ________
A) growth rate of capital B) growth rate of output per worker C) level of consumption per worker D) level of capital per worker
Inequality is often the result of higher levels of work and productivity
a. True b. False
People choose to do something:
A. when they believe the benefits outweigh the costs of the decision. B. when they believe the costs outweigh the benefits of the decision. C. when they believe their decision cannot be questioned by anyone else. D. when they believe it won't harm anyone and will better themselves.