Business cycles all display the following characteristics except
A. rising prices during an expansion and falling prices during the contraction.
B. a period of expansion followed by one of contraction.
C. comovement of many economic variables.
D. they last a period of one to twelve years.
Answer: A
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Which of the following statements is true?
A. The prime rate is higher than the federal funds rate. B. The federal funds rate is higher than the prime rate. C. The prime rate is often the same as the discount rate. D. The federal funds rate and the prime rate are often the same.
Which aggregate measure is used to determine whether or not a country is experiencing a recession?
A) Nominal GDP B) Nominal interest rate C) Real GDP D) Real interest rate E) Gross business inventory investment
The base period for CPI calculations is generally 1982-84. In 2005, 50% of households accessed the Internet through a broadband connection that would not have existed in the 1980s
This potential for bias in the CPI is referred to as ________ bias and results in ________. A) outlet; the CPI overestimating the true change in the cost of living B) outlet; the CPI underestimating the true change in the cost of living C) new product; the CPI overestimating the true change in the cost of living D) net product; the CPI underestimating the true change in the cost of living
An increase in an asset's expected return relative to that of an alternative asset, holding everything else constant, ________ the quantity demanded of the asset
A) increases B) decreases C) has no effect on D) erases