Explain the business cycle by describing the phases and turning points
What will be an ideal response?
The business cycle has two phases, the expansion where GDP is increasing and the recession where GDP is declining for at least two consecutive quarters. There are two turning points, the peak, where an expansion ends and a recession begins, and the trough, where a recession ends and an expansion begins.
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The learning curve is graphically represented as a plot of:
A) labor per unit on the horizontal axis and total cost on the vertical axis. B) labor per unit on the horizontal axis and total number of units produced on the vertical axis. C) total cost on the vertical axis and total number of units produced on the horizontal axis. D) labor per unit on the vertical axis and cumulative number of units produced on the horizontal axis.
If the Fed were to push unemployment below NAIRU, it is likely that:
A. the economy would be operating efficiently. B. deflation will send the economy into a deflationary spiral. C. inflation will increase. D. the dual mandate will be met.
The minimum wage laws seek to
A) penalize employers that are not complying with labor laws. B) assure a minimum standard of payment for work. C) assure that all workers are paid the same wage rate. D) help teenagers find work.
If the average variable cost curve is below the marginal cost curve, then
A. marginal costs can be either increasing or decreasing. B. marginal costs must be decreasing. C. marginal costs must be increasing. D. average variable costs must be decreasing.