Question 1

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements about economic fluctuations is true?

Accepted Answer

A)  None of these answers.
B)  A depression is a mild recession.
C)  A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together.
D)  A recession is when output rises above the natural rate of output.
E)  Economic fluctuations have been termed the "business cycle" because the movements in output are regular and predictable.F) A) and E)
G) All of the above

Question 3

Figure 1.
 
-Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Accepted Answer

A)  1964
B)  1991
C)  1992
D)  2009E) A) and D)
F) All of the above

Question 4

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

Accepted Answer

A)  The real business cycle.
B)  The supply side new classical model.
C)  The demand side Keynesian model.
D)  The supply side Keynesian model.E) A) and B)
F) C) and D)

Question 5

Which is not a characteristic of cyclical variables?

Accepted Answer

A)  Coincident indicator.
B)  Lagging indicator.
C)  Fallacy indicator.
D)  Leading indicator.E) A) and B)
F) B) and C)

Question 6

In the real business cycle model, the causes of business cycles are

Accepted Answer

A)  sticky wages and prices.
B)  technology shocks.
C)  unanticipated price level changes.
D)  changes to aggregate demand.E) A) and B)
F) A) and C)

Question 7

Which is most sensitive to concerns about the future growth of the economy?

Accepted Answer

A)  Spending on food.
B)  Spending on rent.
C)  Spending on durable goods.
D)  Spending of fuel.E) All of the above
F) A) and B)

Question 8

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Accepted Answer

A) True 
 B)False

Question 9

An inflation fallacy is

Accepted Answer

A)  when prices are falling and the economy is growing.
B)  that inflation directly lowers living standards.
C)  people think that prices are rising much higher than they actually are.
D)  prices always deflate in a recession.E) B) and D)
F) A) and B)

Question 10

Procyclical refers to

Accepted Answer

A)  a variable that is above trend when GDP is above trend.
B)  a variable that is equal to the GDP trend.
C)  the economy is growing above trend.
D)  a variable is that is below trend when GDP is above trend.E) A) and B)
F) A) and C)

Question 11

Business cycles have fairly regular time gaps between peaks and troughs.

Accepted Answer

A) True 
 B)False

Question 12

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Accepted Answer

A)  an inverted peak.
B)  a trough.
C)  a recession.
D)  a depression.E) All of the above
F) A) and B)

Question 13

What are the main characteristics of the business cycle?

Accepted Answer

The business cycle is usually shown as c...

Question 14

The trend in GDP is generally

Accepted Answer

A)  upwards.
B)  constant.
C)  downwards.
D)  fluctuates.E) B) and D)
F) All of the above

Exam 13: Business Cycles

What are the main characteristics of the business cycle?

Correct Answer
verified
The business cycle is usually shown as c...
View Answer

Which is not a characteristic of cyclical variables?

Correct Answer
verified

Business cycles have fairly regular time gaps between peaks and troughs.

Correct Answer
verified

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Correct Answer
verified

Which is most sensitive to concerns about the future growth of the economy?

Correct Answer
verified

An inflation fallacy is

Correct Answer
verified

Which of the following statements about economic fluctuations is true?

Correct Answer
verified

Procyclical refers to

Correct Answer
verified

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Correct Answer
verified

The trend in GDP is generally

Correct Answer
verified

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

Correct Answer
verified

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

Correct Answer
verified

In the real business cycle model, the causes of business cycles are

Correct Answer
verified

Figure 1. -Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Correct Answer
verified

Exam 13: Business Cycles

What are the main characteristics of the business cycle?

Correct AnswerverifiedThe business cycle is usually shown as c...View AnswerShow Answer

Which is not a characteristic of cyclical variables?

Correct AnswerverifiedShow Answer

Business cycles have fairly regular time gaps between peaks and troughs.

Correct AnswerverifiedShow Answer

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Correct AnswerverifiedShow Answer

Which is most sensitive to concerns about the future growth of the economy?

Correct AnswerverifiedShow Answer

An inflation fallacy is

Correct AnswerverifiedShow Answer

Which of the following statements about economic fluctuations is true?

Correct AnswerverifiedShow Answer

Procyclical refers to

Correct AnswerverifiedShow Answer

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Correct AnswerverifiedShow Answer

The trend in GDP is generally

Correct AnswerverifiedShow Answer

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

Correct AnswerverifiedShow Answer

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

Correct AnswerverifiedShow Answer

In the real business cycle model, the causes of business cycles are

Correct AnswerverifiedShow Answer

Figure 1. -Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Correct AnswerverifiedShow Answer

Correct Answer
verified
The business cycle is usually shown as c...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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