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2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) 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.

2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) 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.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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D) All óf the above. 2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) 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. 3. Which of the following macroeconomic variables is the most seasonally procyclical? A) Expenditure on services. C) Expenditure on durable goods. B) The unemployment rate. D) The real wage. 4. The difference between market demand and aggregate demand is that: A) Market demand applies to all individuals, and aggregate demand does not. B) Aggregate demand applies to a specific good, and market demand does not. C) Aggregate demand applies to all goods in an economy and market demand applies to a specific good. D) Market demand applies to all goods in an economy and aggregate demand applies to a specific good. 5. The aggregate demand curve shows the relationship between the volume of purchases and the price level. The aggregate demand curve is downward sloping because, ceteris paribus people are willing and able to buy more goods and services at lower average prices. Which of the following is a reason for the downward slope of the aggregate demand curve? A) The real balances effect. C) The foreign trade effect. B) The interest rate effect. D) All of the above, 6. Which of the following is likely to occur for the United States, if the U.S. dollar loses strength relative to the Japanese yen, ceteris paribus? A) Aggregate demand will decrease (shift left). C) Aggregate supply will increase (shift right). B) Aggregate demand will increase (shift right). D) Aggregate supply will decrease (shift left). 7. If the long-run aggregate supply curve is vertical, this: A) Reflects the inflexibility of prices and wages. B) Means that aggregate demand shifts have no impact on output. C) Implies that supply-side policies will have no effect on macro equilibrium. D) Implies that monetary policy is the most effective policy option to reduce unemployment. RMUNNICHA
Transcribed Image Text:D) All óf the above. 2. The idea that the business cycle is recurrent means that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. Co-movement is A) the idea that the standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. B) the tendency of many economic variables to move together in a predictable way over the business cycle. C) the idea that peaks and troughs of the business cycle occur at regular intervals. D) 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. 3. Which of the following macroeconomic variables is the most seasonally procyclical? A) Expenditure on services. C) Expenditure on durable goods. B) The unemployment rate. D) The real wage. 4. The difference between market demand and aggregate demand is that: A) Market demand applies to all individuals, and aggregate demand does not. B) Aggregate demand applies to a specific good, and market demand does not. C) Aggregate demand applies to all goods in an economy and market demand applies to a specific good. D) Market demand applies to all goods in an economy and aggregate demand applies to a specific good. 5. The aggregate demand curve shows the relationship between the volume of purchases and the price level. The aggregate demand curve is downward sloping because, ceteris paribus people are willing and able to buy more goods and services at lower average prices. Which of the following is a reason for the downward slope of the aggregate demand curve? A) The real balances effect. C) The foreign trade effect. B) The interest rate effect. D) All of the above, 6. Which of the following is likely to occur for the United States, if the U.S. dollar loses strength relative to the Japanese yen, ceteris paribus? A) Aggregate demand will decrease (shift left). C) Aggregate supply will increase (shift right). B) Aggregate demand will increase (shift right). D) Aggregate supply will decrease (shift left). 7. If the long-run aggregate supply curve is vertical, this: A) Reflects the inflexibility of prices and wages. B) Means that aggregate demand shifts have no impact on output. C) Implies that supply-side policies will have no effect on macro equilibrium. D) Implies that monetary policy is the most effective policy option to reduce unemployment. RMUNNICHA
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