Answer the following statements true (T) or false (F)

Question

1. Business cycles reflect periods of recession and contraction
2. The index of leading economic indicators of business activity is designed to indicate business fluctuations before they occur.
3. The producer price index accounts for changes in the prices of goods and services purchased by consumers.
4. The short run Phillips curve illustrates the relationship between the rate of inflation and the unemployment rate.
5. Stagflation refers to when the general economy is experiencing a falling unemployment rate and a rising inflation rate.

Answer 1

1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE