Class Notes

Question 1

A trough is where what tends to occur?

Answer 1

Recessions

Question 2

A trough to a peak in an economic cycle is considered what?

Answer 2

Expansion

Question 3

A difference between liquidity and debt is what?

Answer 3

Portfolio Balance

Question 4

How much money you can spend is considered what?

Answer 4

Liquidity

Question 5

In a trough of an economic cycle we end up with what demand?

Answer 5

Pent up demand

Question 6

What is an example of a financial intermediary?

Answer 6

Banks

Question 7

Leading indicators are things that change that indicate a what?

Answer 7

Recession

Question 8

What is an example of a lagging indicator in recessions?

Answer 8

Unemployment

Question 9

What organization says when the economy has entered a recession?

Answer 9

NEBR

Question 10

What two unemployment types are in the Natural Rate of Unemployment always?

Answer 10

Structural and Frictional

Question 11

Frictional unemployment has a ___________ of Unemployment.

Answer 11

Duration

Question 12

Recessions drag out the duration of ____________ Unemployment.

Answer 12

Frictional

Question 13

High rate of ____________ leads to a low rate of ____________ and vice-versa.

Answer 13

Unemployment

Inflation