Exam 8: Business Cycles

The long boom ended in

A variable that tends to move later than aggregate economic activity is called

The AD,SRAS,and LRAS curves each show a relationship between which two economic variables?

The Great Depression consisted of how many business cycles?

A detailed history of business cycles is known as a

The idea that the business cycle is recurrent means that

According to Keynesian macroeconomists,prices adjust ________ to shocks,so the government should ________.

In the long run,an increase in productivity would cause output to ________ and the aggregate price level to ________.

In the long run,a reduction in labor supply would cause output to ________ and the aggregate price level to ________.

The high point in the business cycle is referred to as the

Which of the following macroeconomic variables is the most seasonally procyclical?

When a recession occurs,do economists expect it to be a temporary phenomenon? Or is there some degree of permanence? What is the empirical evidence?

The job finding rate is defined as

Christina Romer argued that

The Great Recession began in ________ and ended in ________.

Suppose the economy is initially in long-run equilibrium.For each of the shocks listed below,explain the short-run effects on output and the price level. (a)A stock market crash reduces consumers' wealth. (b)Businesses decide to hold larger inventories. (c)The government cuts defense spending. (d)Foreign countries buy more U.S.goods.

Economists use the term shocks to mean

When aggregate economic activity is increasing,the economy is said to be in

Stock and Watson found that monetary policy was responsible for about ________% of the reduction in output volatility that occurred in the mid-1980s.

A decline in the stock market,which makes consumers poorer,would cause