Question 1

Explain how to measure the path of any economic series over the cycle.
-What is a cycle relative? Explain how to find a cycle relative.

Accepted Answer

Measuring the path of any economic series over the cycle involves analyzing the fluctuations in the series over time. This can be done by identifying the peaks and troughs of the series, which represent the highest and lowest points of the cycle. By measuring the distance between these peaks and troughs, we can determine the amplitude of the cycle and how the economic series changes over time.

A cycle relative is a measure that compares the current value of an economic series to its historical values within a specific time frame. This allows us to see how the current value of the series compares to its past performance and whether it is above or below its long-term trend.

To find a cycle relative, we can calculate the percentage change or the difference between the current value of the economic series and its historical average or trend. This will give us a measure of how the series is performing relative to its past performance and help us identify whether it is in an upswing or downswing within the cycle. Additionally, we can use statistical methods such as moving averages or detrending techniques to remove the long-term trend and focus on the cyclical movements of the series. By doing so, we can better understand the path of the economic series over the cycle and make informed decisions based on its current relative position.

Question 2

Whats defention of terms:
-business cycle

Accepted Answer

the rise of the economy from trough to peak, as well as the following decline from peak to trough

Question 3

Many economists argue that the unemployment rate tends to understate the actual amount of unemployment. Why?

Accepted Answer

A)  The unemployment rate excludes persons who work in the service sector. 
B)  The unemployment rate excludes persons who are unable to find work. 
C)  The unemployment rate excludes persons who want to work but have given up looking for a job. 
D)  The unemployment rate excludes workers who are also students. 
A)  The unemployment rate excludes persons who work in the service sector. 
B)  The unemployment rate excludes persons who are unable to find work. 
C)  The unemployment rate excludes persons who want to work but have given up looking for a job. 
D)  The unemployment rate excludes workers who are also students. C

Question 4

$\text { Table 41a }$
$\begin{array}{|c|}
\hline  \text {Real GDP}\
 \text {(Billions of 2000 dollars)}\ 
\begin{array}{r|r|r|r|r}
\hline \text { Year } & \text { 1st Qtr } & \text { 2nd Qtr } & \text { 3rd Qtr } & \text { 4th Qtr } \
\hline 1970 & & & & \$ 3,759.8 \
\hline 1971 & 3,864.1 & 3,885.9 & 3,916.7 & 3,927.9 \
\hline 1972 & 3,997.7 & 4,092.1 & 4,131.1 & 4,198.7 \
\hline 1973 & 4,305.3 & 4,355.1 & 4,331.9 & 4,373.3 \
\hline 1974 & 4,335.4 & 4,347.9 & 4,305.8 & 4,288.9 \
\hline 1975 & 4,237.6 & & & \
\hline
\end{array}
\end{array}$

-Table 41a gives quarterly GDP data for a complete business cycle. Using Mitchell's terminology, what is the value for Stage 9?

Accepted Answer

A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion 
A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion

Question 5

Explain how to measure the path of any economic series over the cycle.
-What is a cycle base? Explain how to find a cycle base.

Accepted Answer

Measuring the path of any economic serie

Question 6

Explain how to measure the path of any economic series over the cycle.
-Name one economic series that falls in expansion and rises in contraction. Explain this behavior.

Accepted Answer

The answer of Explain how to measure the path of...

Question 7

$\text { Table 41a }$
$\begin{array}{|c|}
\hline  \text {Real GDP}\
 \text {(Billions of 2000 dollars)}\ 
\begin{array}{r|r|r|r|r}
\hline \text { Year } & \text { 1st Qtr } & \text { 2nd Qtr } & \text { 3rd Qtr } & \text { 4th Qtr } \
\hline 1970 & & & & \$ 3,759.8 \
\hline 1971 & 3,864.1 & 3,885.9 & 3,916.7 & 3,927.9 \
\hline 1972 & 3,997.7 & 4,092.1 & 4,131.1 & 4,198.7 \
\hline 1973 & 4,305.3 & 4,355.1 & 4,331.9 & 4,373.3 \
\hline 1974 & 4,335.4 & 4,347.9 & 4,305.8 & 4,288.9 \
\hline 1975 & 4,237.6 & & & \
\hline
\end{array}
\end{array}$

-Table 41a gives quarterly GDP data for a complete business cycle. Using Mitchell's terminology, what is the value for the cycle base?

Accepted Answer

A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion 
A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion

Question 8

Explain how to find the peaks and troughs of the business cycle.
-What is an expansion? What is a contraction?

Accepted Answer

The answer of Explain how to find the peaks and...

Question 9

$\text { Table 41a }$
$\begin{array}{|c|}
\hline  \text {Real GDP}\
 \text {(Billions of 2000 dollars)}\ 
\begin{array}{r|r|r|r|r}
\hline \text { Year } & \text { 1st Qtr } & \text { 2nd Qtr } & \text { 3rd Qtr } & \text { 4th Qtr } \
\hline 1970 & & & & \$ 3,759.8 \
\hline 1971 & 3,864.1 & 3,885.9 & 3,916.7 & 3,927.9 \
\hline 1972 & 3,997.7 & 4,092.1 & 4,131.1 & 4,198.7 \
\hline 1973 & 4,305.3 & 4,355.1 & 4,331.9 & 4,373.3 \
\hline 1974 & 4,335.4 & 4,347.9 & 4,305.8 & 4,288.9 \
\hline 1975 & 4,237.6 & & & \
\hline
\end{array}
\end{array}$

-Table 41a gives quarterly GDP data for a complete business cycle. Using Mitchell's terminology, what is the value for the cycle relative in Stage 1?

Accepted Answer

A)  105.4 
B)  90.6 
C)  86.2 
D)  55.1 
A)  105.4 
B)  90.6 
C)  86.2 
D)  55.1

Question 10

$\text { Table 41a }$
$\begin{array}{|c|}
\hline  \text {Real GDP}\
 \text {(Billions of 2000 dollars)}\ 
\begin{array}{r|r|r|r|r}
\hline \text { Year } & \text { 1st Qtr } & \text { 2nd Qtr } & \text { 3rd Qtr } & \text { 4th Qtr } \
\hline 1970 & & & & \$ 3,759.8 \
\hline 1971 & 3,864.1 & 3,885.9 & 3,916.7 & 3,927.9 \
\hline 1972 & 3,997.7 & 4,092.1 & 4,131.1 & 4,198.7 \
\hline 1973 & 4,305.3 & 4,355.1 & 4,331.9 & 4,373.3 \
\hline 1974 & 4,335.4 & 4,347.9 & 4,305.8 & 4,288.9 \
\hline 1975 & 4,237.6 & & & \
\hline
\end{array}
\end{array}$

-Table 41a gives quarterly GDP data for a complete business cycle. Using Mitchell's terminology, what is the value for Stage 1?

Accepted Answer

A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion 
A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion

Question 11

What is meant by the cycle base?

Accepted Answer

A)  the original data in a stage divided by the cycle relative. 
B)  the capacity utilization during the initial trough. 
C)  the average of an economic series for one whole cycle. 
D)  the lowest point of the cycle. 
A)  the original data in a stage divided by the cycle relative. 
B)  the capacity utilization during the initial trough. 
C)  the average of an economic series for one whole cycle. 
D)  the lowest point of the cycle.

Question 12

What is meant by capacity utilization?

Accepted Answer

A)  How much productive capacity can be effectively utilized. 
B)  How much productive capacity is currently being utilized. 
C)  The average utilization of capacity over the business cycle. 
D)  The capacity for utilizing something. 
A)  How much productive capacity can be effectively utilized. 
B)  How much productive capacity is currently being utilized. 
C)  The average utilization of capacity over the business cycle. 
D)  The capacity for utilizing something.

Question 13

Whats defention of terms:
-business cycle peak

Accepted Answer

The answer of Whats defention of terms:
-business cycle peak...

Question 14

Explain how to measure the path of any economic series over the cycle.
-Explain how to calculate the percentage of expansion and the percentage of ?contraction?

Accepted Answer

Measuring the path of any economic serie

Question 15

Whats defention of terms:
-business cycle trough

Accepted Answer

The answer of Whats defention of terms:
-business cycle trough...

Question 16

Describe measuring how much an economic series rises from trough to peak and falls from peak to trough.
-What is a cycle relative and how is it calculated?

Accepted Answer

Measuring how much an economic series ri

Question 17

Whats defention of terms:
-cycle base

Accepted Answer

The answer of Whats defention of terms:
-cycle base...

Question 18

Explain how to find the peaks and troughs of the business cycle.
-What happens to capacity utilization over the business cycle?

Accepted Answer

The answer of Explain how to find the peaks and...

Question 19

$\text { Table 41a }$
$\begin{array}{|c|}
\hline  \text {Real GDP}\
 \text {(Billions of 2000 dollars)}\ 
\begin{array}{r|r|r|r|r}
\hline \text { Year } & \text { 1st Qtr } & \text { 2nd Qtr } & \text { 3rd Qtr } & \text { 4th Qtr } \
\hline 1970 & & & & \$ 3,759.8 \
\hline 1971 & 3,864.1 & 3,885.9 & 3,916.7 & 3,927.9 \
\hline 1972 & 3,997.7 & 4,092.1 & 4,131.1 & 4,198.7 \
\hline 1973 & 4,305.3 & 4,355.1 & 4,331.9 & 4,373.3 \
\hline 1974 & 4,335.4 & 4,347.9 & 4,305.8 & 4,288.9 \
\hline 1975 & 4,237.6 & & & \
\hline
\end{array}
\end{array}$

-Table 41a gives quarterly GDP data for a complete business cycle. Using Mitchell's terminology, what is the value for Stage 5?

Accepted Answer

A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion 
A)  $3,759.8 billion 
B)  $4,237.6 billion 
C)  $4,373.3 billion 
D)  $4,147.5 billion

Question 20

Explain how to find the peaks and troughs of the business cycle.
-How does unemployment behave over the business cycle?

Accepted Answer

The answer of Explain how to find the peaks and...

Exam 41: How to Measure Instability

Explain how to measure the path of any economic series over the cycle. -What is a cycle relative? Explain how to find a cycle relative.

Whats defention of terms: -business cycle

Many economists argue that the unemployment rate tends to understate the actual amount of unemployment. Why?

Explain how to measure the path of any economic series over the cycle. -What is a cycle base? Explain how to find a cycle base.

Explain how to measure the path of any economic series over the cycle. -Name one economic series that falls in expansion and rises in contraction. Explain this behavior.

Explain how to find the peaks and troughs of the business cycle. -What is an expansion? What is a contraction?

What is meant by the cycle base?

What is meant by capacity utilization?

Whats defention of terms: -business cycle peak

Explain how to measure the path of any economic series over the cycle. -Explain how to calculate the percentage of expansion and the percentage of ?contraction?

Whats defention of terms: -business cycle trough

Describe measuring how much an economic series rises from trough to peak and falls from peak to trough. -What is a cycle relative and how is it calculated?

Whats defention of terms: -cycle base

Explain how to find the peaks and troughs of the business cycle. -What happens to capacity utilization over the business cycle?

Explain how to find the peaks and troughs of the business cycle. -How does unemployment behave over the business cycle?

Prehistoric Communal Institutions in the Middle East

Communal Equality to Slavery in the Middle East

Slavery to Feudalism in Western Europe

Feudalism and Paternalism in England

Feudalism to Capitalism in England

Mercantilism in England

Pre-Capitalism to Industrial Capitalism in the United States 1776-1865

Classical Liberalism Defense of Industrial Capitalism

Socialist Protest Against Industrial Capitalism

Marx Critique and Alternative to Capitalism

Rise of Corporate Capitalism in the United States, 1865-1900

Neoclassical Economics Defense of Corporate Capitalism

Veblen Critique of Corporate Capitalism

Growth and Depression in the United States, 1900-1940

Keynesian Economics and the Great Depression

The United States and Global Capitalism, 1940-2006

Robinson Crusoe Two Perspectives on Microeconomics

The Two Americas Inequality, Class, and Conflict

Inequality, Exploitation, and Economic Institutions

Prices, Profits, and Exploitation

Market Power and Global Corporations

Economics of Racial and Gender Discrimination

Environmental Devastation

Government and Inequality

Economic Democracy

Scarcity and Choice Neoclassical View

Simple Analytics of Supply and Demand

Consumption Theory: Demand

Production Theory Supply

Costs of Production

Work and Wages Neoclassical View of Income Distribution

Prices and Profits in Perfect Competition

Monopoly, Power, Prices, and Profits

Monopolistic Competition and Oligopoly

Market Failures Public Goods, Market Power, and Externalities

History of Business Cycles and Human Misery

National Income Accounting How to Map the Circulation of Money and Goods

Money and Profit Says Law and Institutionalist Criticism

Neoclassical View of Aggregate Supply and Demand

Keynesian View of Aggregate Supply and Demand

Consumer Spending and Labor Income

Investment Spending and Profit

The Multiplier

Business Cycles and Unemployment

Growth and Waste

Fiscal Policy

Government Spending and Taxes

Money, Banking, and Credit

Inflation

Monetary Policy

Exports and Imports

International Trade, Investment, and Finance How Instability Spreads Around the World

Debate on Globalization

Debate on Free Trade

Development

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