Question 1

Persistence is

Accepted Answer

A) the tendency for declines in economic activity to be followed by further declines,and for growth in economic activity to be followed by more growth. 
B) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. 
C) the tendency of many economic variables to move together in a predictable way over the business cycle. 
D) the idea that peaks and troughs of the business cycle occur at regular intervals. 
A) the tendency for declines in economic activity to be followed by further declines,and for growth in economic activity to be followed by more growth. 
B) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. 
C) the tendency of many economic variables to move together in a predictable way over the business cycle. 
D) the idea that peaks and troughs of the business cycle occur at regular intervals. A

Question 2

The Great Recession began in ________ and ended in ________.

Accepted Answer

A) December 2007; June 2009 
B) December 2007; December 2011 
C) October 2008; June 2009 
D) October 2008; December 2011 
A) December 2007; June 2009 
B) December 2007; December 2011 
C) October 2008; June 2009 
D) October 2008; December 2011 A

Question 3

Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that

Accepted Answer

A) estimates of the timing of business cycles since World War II had been inaccurate. 
B) misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era. 
C) economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II. 
D) economists had left out important components of GDP,such as wholesale and retail distribution,transportation,and services,in their pre-World War II estimates. 
A) estimates of the timing of business cycles since World War II had been inaccurate. 
B) misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era. 
C) economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II. 
D) economists had left out important components of GDP,such as wholesale and retail distribution,transportation,and services,in their pre-World War II estimates. D

Question 4

Describe the major features of the business cycle.Be sure to discuss what variables are affected by the cycle,a description of the key features that are apparent in the data,how variables are related to one another,how regular the cycle is,and how predictable the cycle is.

Accepted Answer

The business cycle is defined as a fluct

Question 5

The tendency of many economic variables to move together in a predictable way over the business cycle is called

Accepted Answer

A) recurrence. 
B) persistence. 
C) comovement. 
D) inflation. 
A) recurrence. 
B) persistence. 
C) comovement. 
D) inflation.

Question 6

Wars,new inventions,harvest failures,and changes in government policy are examples of

Accepted Answer

A) the business cycle. 
B) economic models. 
C) shocks. 
D) opportunity costs. 
A) the business cycle. 
B) economic models. 
C) shocks. 
D) opportunity costs.

Question 7

For each outcome below,tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve.
(a)In the short run,the price level is unchanged and output rises.
(b)In the long run,the price level declines and output is unchanged.
(c)In the long run,the price level rises and output declines.

Accepted Answer

Ms (a)The aggregate demand cur

Question 8

What are the two main components of business cycle theories?

Accepted Answer

A) A description of shocks and a model of how the economy responds to them 
B) A model of how people decide to spend and a description of the government's role in the economy 
C) A model of how equilibrium is reached and a description of the government's role in the economy 
D) A description of shocks and a description of the government's role in the economy 
A) A description of shocks and a model of how the economy responds to them 
B) A model of how people decide to spend and a description of the government's role in the economy 
C) A model of how equilibrium is reached and a description of the government's role in the economy 
D) A description of shocks and a description of the government's role in the economy

Question 9

Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?

Accepted Answer

A) Money supply 
B) Industrial production 
C) Inventory investment 
D) Residential investment 
A) Money supply 
B) Industrial production 
C) Inventory investment 
D) Residential investment

Question 10

A variable that tends to move in advance of aggregate economic activity is called

Accepted Answer

A) a leading variable. 
B) a coincident variable. 
C) a lagging variable. 
D) an acyclical variable. 
A) a leading variable. 
B) a coincident variable. 
C) a lagging variable. 
D) an acyclical variable.

Question 11

Which of the following macroeconomic variables could not be used as a leading economic indicator?

Accepted Answer

A) Residential investment 
B) Employment 
C) The money supply 
D) Stock prices 
A) Residential investment 
B) Employment 
C) The money supply 
D) Stock prices

Question 12

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

Accepted Answer

A) a contraction. 
B) an expansion. 
C) a trough. 
D) a turning point. 
A) a contraction. 
B) an expansion. 
C) a trough. 
D) a turning point.

Question 13

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

Accepted Answer

A) slowly; do little 
B) rapidly; do little 
C) rapidly; fight recessions 
D) slowly; fight recessions 
A) slowly; do little 
B) rapidly; do little 
C) rapidly; fight recessions 
D) slowly; fight recessions

Question 14

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

Accepted Answer

A) The aggregate price level and output 
B) The aggregate price level and the interest rate 
C) Output and unemployment 
D) Output and the interest rate 
A) The aggregate price level and output 
B) The aggregate price level and the interest rate 
C) Output and unemployment 
D) Output and the interest rate

Question 15

How has the severity and duration of business cycles changed over time in the United States?

Accepted Answer

Though it is a controversial subject,it

Question 16

Comovement is

Accepted Answer

A) the tendency for declines in economic activity to be followed by further declines,and for growth in economic activity to be followed by more growth. 
B) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. 
C) the tendency of many economic variables to move together in a predictable way over the business cycle. 
D) the idea that peaks and troughs of the business cycle occur at regular intervals. 
A) the tendency for declines in economic activity to be followed by further declines,and for growth in economic activity to be followed by more growth. 
B) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. 
C) the tendency of many economic variables to move together in a predictable way over the business cycle. 
D) the idea that peaks and troughs of the business cycle occur at regular intervals.

Question 17

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,the long-run aggregate supply curve

Accepted Answer

A) slopes upward. 
B) slopes downward. 
C) is vertical. 
D) is horizontal. 
A) slopes upward. 
B) slopes downward. 
C) is vertical. 
D) is horizontal.

Question 18

The CFNAI is a

Accepted Answer

A) leading index based on variables released with different frequencies. 
B) coincident index based on variables released with different frequencies. 
C) leading index based on 85 monthly variables. 
D) coincident index based on 85 monthly variables. 
A) leading index based on variables released with different frequencies. 
B) coincident index based on variables released with different frequencies. 
C) leading index based on 85 monthly variables. 
D) coincident index based on 85 monthly variables.

Question 19

Research on the effects of recessions on the real level of GDP shows that

Accepted Answer

A) recessions cause only temporary reductions in real GDP,which are offset by growth during the expansion phase. 
B) recessions cause large,permanent reductions in the real level of GDP. 
C) recessions cause both temporary and permanent declines in real GDP,but most of the decline is temporary. 
D) recessions cause both temporary and permanent declines in real GDP,but most of the decline is permanent. 
A) recessions cause only temporary reductions in real GDP,which are offset by growth during the expansion phase. 
B) recessions cause large,permanent reductions in the real level of GDP. 
C) recessions cause both temporary and permanent declines in real GDP,but most of the decline is temporary. 
D) recessions cause both temporary and permanent declines in real GDP,but most of the decline is permanent.

Question 20

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?

Accepted Answer

Recent research suggests that recessions

Persistence is

The Great Recession began in and ended in .

Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that

Describe the major features of the business cycle.Be sure to discuss what variables are affected by the cycle,a description of the key features that are apparent in the data,how variables are related to one another,how regular the cycle is,and how predictable the cycle is.

The tendency of many economic variables to move together in a predictable way over the business cycle is called

Wars,new inventions,harvest failures,and changes in government policy are examples of

What are the two main components of business cycle theories?

Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?

A variable that tends to move in advance of aggregate economic activity is called

Which of the following macroeconomic variables could not be used as a leading economic indicator?

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

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

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

How has the severity and duration of business cycles changed over time in the United States?

Comovement is

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,the long-run aggregate supply curve

The CFNAI is a

Research on the effects of recessions on the real level of GDP shows that

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?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

Exam 8: Business Cycles

Persistence is

The Great Recession began in ________ and ended in ________.

Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that

Describe the major features of the business cycle.Be sure to discuss what variables are affected by the cycle,a description of the key features that are apparent in the data,how variables are related to one another,how regular the cycle is,and how predictable the cycle is.

The tendency of many economic variables to move together in a predictable way over the business cycle is called

Wars,new inventions,harvest failures,and changes in government policy are examples of

What are the two main components of business cycle theories?

Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?

A variable that tends to move in advance of aggregate economic activity is called

Which of the following macroeconomic variables could not be used as a leading economic indicator?

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

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

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

How has the severity and duration of business cycles changed over time in the United States?

Comovement is

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,the long-run aggregate supply curve

The CFNAI is a

Research on the effects of recessions on the real level of GDP shows that

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?

Introduction to Macroeconomics

The Measurement and Structure of the National Economy

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters

The Great Recession began in and ended in .

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