Econ Chapter 13 Notes Flashcards
1
Q
What is the Business Cycle?
(Draw and Define)
A
Regular Ups and Downs of Real GDP
2
Q
What are Economic Indicators?
A
- Used to create forecasts of future economic activity
- Procyclic and Countercyclic
3
Q
What is Procyclic?
A
When they go up, economy is doing well
When they go down, economy is doing poorly
4
Q
Examples of Procyclic?
(List at least two)
A
Real GDP
Retail Sales
Stock Prices
Housing Starts
Personal Income
5
Q
What is Countercyclic?
A
- Moved in opposite direction of the business cycle
- When they go up, the economy is doing poorly
- When they go down, the economy is doing well
6
Q
Examples of Countercyclic?
(List at least two)
A
- Unemployment Rate
- Consumer Debt
- Business Debt
- Business Inventories
