Multiple Choice
Which of the following statements about business cycles is FALSE?
A) They are wavelike movements of economic activity.
B) They are recurring periods of growth and decline in an economy's real GDP.
C) They have five phases which occur in this order: recovery, peak, recession, depression, trough.
D) The expansion and contraction of economic activity is not of equal length or intensity in all business cycles.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: A business cycle is:<br>A) a recurring period
Q15: The main determinant of an economy's level
Q16: Spending from borrowing, and saving from income
Q17: A decrease in nonincome-determined spending leads to:<br>A)
Q18: The sector of the economy that purchases
Q20: How are all business cycles alike, and
Q21: If the economy is at full employment,
Q22: Government transfer payments:<br>A) are income-determined spending.<br>B) are
Q23: If government purchases increased by $30 billion,
Q24: The multiplier effect:<br>A) equals the change in