B5 - Changes in Economic and Business Cycles Flashcards
1
Q
What is the definition of macroeconomics?
A
The study of the economy as a whole
2
Q
What is another name for the price index used to calculate real GDP?
A
GDP deflator
3
Q
What are the stages of a business cycle?
A
"Every peak contracts through recovery" Expansionary Peak Contractionary Trough Recovery
4
Q
What are the three economic indicators?
A
Leading
Lagging
Coincidental
5
Q
What are the factors that shift aggregate demand?
A
TWICE Government Taxes Wealth Interest rates Consumer confidence Exchange rates Government spending
6
Q
How is the multiplier effect calculated?
A
1 / (1 - marginal propensity to consume)
7
Q
To what are variations between business cycles most likely attributable?
A
Duration and intensity
