Business Cycles and Fluctuations – Flashcards
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The passage discusses a business fluctuation influenced by
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D.)external shock.
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A recession is the period in which real GDP declines for two consecutive quarters.
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TRUE
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A severe recession with high unemployment, acute shortages, and excess manufacturing capacity is known as
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B.)a depression.
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Business fluctuations are systematic increases and decreases in real GDP.
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FALSE
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The index of leading indicators
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C.)is used to predict changes in business cycles.
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All of the following factors contribute to business cycles EXCEPT
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B.)
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A recession is the period in which real GDP increase over two consecutive quarters.
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FALSE
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Which letter on the graph represents a recession in the business cycle?
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B.)X
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The Roaring Twenties in the graph can be characterized as a period of economic
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C.)expansion.
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peak
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point in the business cycle when real GDP stops increasing
