Changes in Economic and Business Cycles

Question 1

What is the rise and fall of economic activity relative to its long-term growth?

Answer 1

Business cycles

Question 2

Is growth in economic activity stable?

Answer 2

No

Question 3

What is the study of economy as a whole?

Answer 3

Macroeconomics

Question 4

What is the total market value of all final goods and services?

Answer 4

GDP(Gross Domestic Product)

Question 5

What GDP is measured in “today’s prices”?

Answer 5

Nonimal GDP

Question 6

What GDP is measured in “base year” prices?

Answer 6

Real GDP

Question 7

Calculation for Real GDP

Answer 7

(Nonimal GDP / GDP Deflator) x 100

Question 8

What compare standards of living across countries or across time?

Answer 8

Real GDP per capita

Question 9

What is the increase in real GDP per capita over time?

Answer 9

Economic growth

Question 10

What phase involves an increase in employment and GDP?

Answer 10

Expansionary phase

Question 11

What phase involves a decrease in profits and growth?

Answer 11

Peak phase

Question 12

What phase involves a decrease in GDP and Employment?

Answer 12

Contractionary phase

Question 13

What phase involves an increase in unemployment and makes people hesitant to make investments?

Answer 13

Trough phase

Question 14

What phase involves an increase in GDP only?

Answer 14

Recovery phase

Question 15

What is it called when the economy is below long-term avg. growth for two consecutive quarters?

Answer 15

Recession

Question 16

What is a servere recession?

Answer 16

Depression

Question 17

What type of indicators appear before the fact?

Answer 17

Leading indicators

Question 18

What type of indicators appear after the fact?

Answer 18

Lagging indicators

Question 19

A change in price causes a change in?

Answer 19

Quantity demanded and quantity supplied

Question 20

A change in aggregate demand and aggregate supplies causes a change in?

Answer 20

Price level

Question 21

Is aggregate demand sloped downward or upward?

Answer 21

Downward

Question 22

Is aggregate supply sloping upward or downward?

Answer 22

Upward

Question 23

Which way does long-run aggregate supply line run?

Answer 23

Vertical

Question 24

What type of GDP is when the level of real GDP that the economy would produce if its resources were fully employed?

Answer 24

Potential GDP

Question 25

What are the factors that shift aggregate demand?

Answer 25

Taxes, Wealth, Interest rates, Consumer confidence, Exchange rates, Government spending

Question 26

What are the factors that shift aggregate supply?

Answer 26

Input prices, Supplies, and Economic activity