How is recession defined by the National Bureau of Economic Research [NBER]?
a. Two consecutive quarters of declining GDP
b. A significant decline in total output, income, employment, and trade for six months to one year
c. A dramatic decline in unemployment for less than six months
d. A sharp increase in money supply and the market rate of interest
e. A significant decline in stock prices over three consecutive quarters of a business year
b
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In the recent Global Economic Crisis, the end of cash-out mortgage refinancing caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.
We limit ourselves to two periods in the intertemporal model of the business cycle because
A) we need to concentrate on the two phases of the business cycle. B) we can assume that people can live two periods of, say, 30 years. C) this is all we need to emphasize the intertemporal trade-off. D) we need an even number of periods.
Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:
a. a downward movement along the demand curve for bus travel. b. no change in the demand curve for bus travel. c. an upward movement along the demand curve for air travel. d. a rightward shift in the demand curve for bus travel.