Question 1

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

Accepted Answer

A) True 
 B)False

Question 2

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about economic fluctuations is true?

Accepted Answer

A) None of these answers. 
B) A depression is a mild recession. 
C) A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together. 
D) A recession is when output rises above the natural rate of output. 
E) Economic fluctuations have been termed the "business cycle" because the movements in output are regular and predictable. 
A) None of these answers. 
B) A depression is a mild recession. 
C) A variety of spending, income, and output measures can be used to measure economic fluctuations because most macroeconomic quantities tend to fluctuate together. 
D) A recession is when output rises above the natural rate of output. 
E) Economic fluctuations have been termed the "business cycle" because the movements in output are regular and predictable.

Question 4

The trend in GDP is generally

Accepted Answer

A) upwards. 
B) constant. 
C) downwards. 
D) fluctuates. 
A) upwards. 
B) constant. 
C) downwards. 
D) fluctuates.

Question 5

What are the main characteristics of the business cycle?

Accepted Answer

The business cycle is usually shown as c

Question 6

Which is most sensitive to concerns about the future growth of the economy?

Accepted Answer

A) Spending on food. 
B) Spending on rent. 
C) Spending on durable goods. 
D) Spending of fuel. 
A) Spending on food. 
B) Spending on rent. 
C) Spending on durable goods. 
D) Spending of fuel.

Question 7

An inflation fallacy is

Accepted Answer

A) when prices are falling and the economy is growing. 
B) that inflation directly lowers living standards. 
C) people think that prices are rising much higher than they actually are. 
D) prices always deflate in a recession. 
A) when prices are falling and the economy is growing. 
B) that inflation directly lowers living standards. 
C) people think that prices are rising much higher than they actually are. 
D) prices always deflate in a recession.

Question 8

Which is not a characteristic of cyclical variables?

Accepted Answer

A) Coincident indicator. 
B) Lagging indicator. 
C) Fallacy indicator. 
D) Leading indicator. 
A) Coincident indicator. 
B) Lagging indicator. 
C) Fallacy indicator. 
D) Leading indicator.

Question 9

Figure 1.
  
-Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Accepted Answer

A) 1964 
B) 1991 
C) 1992 
D) 2009 
A) 1964 
B) 1991 
C) 1992 
D) 2009

Question 10

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

Accepted Answer

A) The real business cycle. 
B) The supply side new classical model. 
C) The demand side Keynesian model. 
D) The supply side Keynesian model. 
A) The real business cycle. 
B) The supply side new classical model. 
C) The demand side Keynesian model. 
D) The supply side Keynesian model.

Question 11

In the real business cycle model, the causes of business cycles are

Accepted Answer

A) sticky wages and prices. 
B) technology shocks. 
C) unanticipated price level changes. 
D) changes to aggregate demand. 
A) sticky wages and prices. 
B) technology shocks. 
C) unanticipated price level changes. 
D) changes to aggregate demand.

Question 12

Business cycles have fairly regular time gaps between peaks and troughs.

Accepted Answer

A) True 
 B)False

Question 13

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Accepted Answer

A) an inverted peak. 
B) a trough. 
C) a recession. 
D) a depression. 
A) an inverted peak. 
B) a trough. 
C) a recession. 
D) a depression.

Question 14

Procyclical refers to

Accepted Answer

A) a variable that is above trend when GDP is above trend. 
B) a variable that is equal to the GDP trend. 
C) the economy is growing above trend. 
D) a variable is that is below trend when GDP is above trend. 
A) a variable that is above trend when GDP is above trend. 
B) a variable that is equal to the GDP trend. 
C) the economy is growing above trend. 
D) a variable is that is below trend when GDP is above trend.

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Which of the following statements about economic fluctuations is true?

The trend in GDP is generally

What are the main characteristics of the business cycle?

Which is most sensitive to concerns about the future growth of the economy?

An inflation fallacy is

Which is not a characteristic of cyclical variables?

Figure 1. -Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

In the real business cycle model, the causes of business cycles are

Business cycles have fairly regular time gaps between peaks and troughs.

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Procyclical refers to

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

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Exam 13: Business Cycles

If trends do not exist then policy measures designed to reduce deviations from trend are misguided.

In the New Classical model, when output is above trend, unemployment is countercyclical and employment will be above trend and so be procyclical.Inflation will be procyclical, but real wages will be countercyclical because as output rises real wages fall.

Which of the following statements about economic fluctuations is true?

The trend in GDP is generally

What are the main characteristics of the business cycle?

Which is most sensitive to concerns about the future growth of the economy?

An inflation fallacy is

Which is not a characteristic of cyclical variables?

Figure 1. -Referring to Figure 1 in which year did the economy stagnate with little or no growth?

Which business cycle model believes that policy measures designed to reduce deviations from trend are misguided?

In the real business cycle model, the causes of business cycles are

Business cycles have fairly regular time gaps between peaks and troughs.

A severe and prolonged recessionary phase of a business cycle is sometimes described as

Procyclical refers to

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters