Author: Anonymous

During a typical recession, total consumer spending on houses and cars will ________ , and total consumer spending on clothing and services will __________ .

   What is the value of Real GDP for 2007, expressed in base year prices?

   What is the value of Real GDP for 2007, expressed in base year prices?

Suppose the US President and Congress agree to send economic recovery checks to American citizens: $1,400 for an individual, $2,800 for a couple and $500 for each child. How will the US economy be impacted by this event?

Viewpoint #1: Prices, wages and interest rates are inflexible in the downward direction.Viewpoint #2: Prices, wages and interest rates are fully flexible.

  On the diagram of the stereotypical business cycle, the trough is represented by:

What happens to the economy if the observed unemployment rate falls below the natural rate of unemployment for an extended period of time?

  On the diagram of the stereotypical business cycle, the trough is represented by:

If the economy falls into a recession and consumption and investment spending decline, then state and local government spending is likely to:

Alternating periods of economic growth and contraction are: