Exam 13: Business Cycles

A recession occurs

Economic forecasting is not perfect,

Which is an external source affecting the business cycle?

Which consumer purchases are more volatile over the business cycle?

Figure 1. -Referring to Figure 1, the number of recessions shown in the time series was:

Which of the following statements is true?

The amplitude measures the difference between start and end of the business cycle.

Which aggregate supply shock is most likely to have a permanent effect?

Figure 1. -Referring to Figure 1, between 1988 and 1991 the economy

In what way does the real business cycle model differ from other models?

Which technically correctly describes a recession?

Which of the following is true of GDP time series data?

If economic growth declines then it must be true that the economy is in a recession.

If data exhibits a trend that is stochastic then

A cyclical peak or trough occurs when GDP

What is the difference between a recession and a depression?

If firms face a weak demand they are more likely to

Aggregate supply shocks can be either temporary or permanent.Both types can cause deviations from the trend output.

Which business cycle model is based around the concept of anticipated and unanticipated price changes?

If GDP was above trend for an 18-month period we would expect the following variables to change.