Exam 12: Short-Run Fluctuations

A firm's ________ when its inventory increases.

There are about 75 million owner-occupied homes in the United States,and about 50 million of those have a mortgage.If the foreclosure rate is 2 percent per year,how many home foreclosures take place each year?

How do animal spirits affect GDP?

During an expansion,real GDP rises.Which of the following also tends to rise?

Declines in housing prices in the United States in the late 2000s ________.

On a graph with real GDP growth on the x-axis and the unemployment rate on the y-axis,you plot each year's values for the United States as a separate point.What does the overall trend in this graph look like?

If the aggregate price level ________,but nominal wages stay fixed,real wages ________.

The figure below shows the labor demand and labor supply curves for an economy. -Refer to the figure above.The economy is currently at E.Which of the following is likely to happen if a recession hits the economy,assuming that there is downward rigidity of wages?

If a recession hits Potentia,its government can stimulate the economy by ________.

The demand for Country Y's most important exportable product-electronic goods-is likely to double over the next 5 years.Which of the following is likely to happen in this case?

Fears of an impending civil war in Baltonia have reduced the confidence of potential investors.Assuming all else equal,which of the following is likely to happen in this case?

Which of the following describes how much policymakers and economists anticipated the Great Depression?

An initial leftward shift in labor demand often creates a cascading chain of events,amplifying the impact of the initial shock.This is known as the ________ effect.

________ is one source of involuntary unemployment during recessions.

If aggregate investment in an economy falls,which of the following is likely to happen?

The rate of technological progress is an important determinant of ________.

The food processing industry in Richland accounts for 20 percent of its GDP.Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remain unchanged.

There are about 75 million owner-occupied homes in the United States,and about 50 million of those have a mortgage.If the foreclosure rate is 6 percent per year,how many home foreclosures take place each year?

Which of the following is true of economic expansions?

How is a firm's labor demand curve affected when the price of its product rises?