Blog

  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:

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

A discouraged worker is:

Viewpoint #1: A market-based economy is a naturally stable place, usually achieving the economic goals of Potential GDP, Full Employment and Price Stability.Viewpoint #2: The economy has the ability to fix its own macroeconomic problems, and to do so with reasonable speed.

Which of the following suggests that lower average prices make it more difficult to cover interest payments and other costs of doing business, causing firms to reduce production?

All of the following items are included in the Gross Private Investment (I) category of America’s national income and product accounts EXCEPT:

Which of the following are classified as external shocks to an economy?

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