The business-cycle roller coaster A recession is a decline in real GDP lasting at least: Select one: O a. one year. O b. six months. O c. three months. O d. one month.
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Q: GDP
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Q: QUESTION 6 Refer to the accompanying data, using year 1 as the base year, All dollars are in…
A: * SOLUTION :- * The OPTION A ($ 68 billion) is correct answer. * Explanation :-
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- An economic expansion rather than a recession occurs Select one: O a. when growth in real GDP is positive. O b. when the unemployment rate falls below 5 percent. O c when the federal budget is balanced. O d. when the unemployment rate is not changing.The seasonally adjusted data below depict the performance of the economy of the United States in five quarters of 1953-1954. Year/Quarter 1953/Q4 1954/Q1 1954/02 1954/Q3 1954/04 Select one: OA. 1953/04. Annual Percent Change Nominal GDP OB. 1954/01 O C. 1954/02. O D. 1954/03. QE. 1954/04. -5.2 -0.6 0.8 5.1 9.2 Real GDP in the United States was lowest in which of the following quarters? Annual Percent Change Real GDP -5.9 -1.9 0.4 4.6 8.1In the graph you've just explored, when did the most recent expansion begin? The most recent expansion began _____. A. At the trough in 2009 B. at the peak in 2007 C. in 2005 D. in 2008 when real GDP equaled potential GDP
- Question 7 Which of the following would be counted in this year's GDP? O a O b O C Od Question & What is the difference between real GDP and nominal GDP? O a O b Column A 1. 2. C d Question 9 Match each phase of the business cycle to its correct definition. 3. The bonus check a worker receives this year the value of a loan taken out this year The value of a savings bond sold by the federal government to investors this year The value of a television produced last year but sold this year 4 Real GDP allows for depreciation; nominal GDP allows for no depreciation. Real GDP includes nonmarket activities; nominal GDP has no nonmarket activities. Real GDP is based on constant prices; nominal GDP is based on the current year's prices. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. period of economic decline marked by falling real GDP a period of economic growth as measured by a rise in real GDP the height of an economic expansion, when real GDP…Suppose you read in the Wal Street Journal that, during the fourth quarter of 2020, the U.S. economy expanded at the fastest rate in two decades. It follows that one would expect in the unemployment rate and. in real GDP during the fourth quarter of 2020. O a. a decrease; a decrease O b. an'increase; an increase O c. a decrease; an increase O d. an increase; a decrease Next pageBy tradtional rule-of-thumb, which of the following correctly identifies the dates of the most recent recession in the U.S.? a. Starting July 2019 and ending January 2021. O b. First and second quarters of 2022. c. Starting second quarter 2020. d. Third quarter 2022.
- The macroeconomy is depicted by the graph to the right 160- a. The current equilibrium price level and output level respectively are: 80 and $ 10 trillion. (Enter your responses as a whole numbers.) LRAS 140- b. The full employment level of GDP is SRAS O A. $10 trillion since the LRAS is defined at this point. 120- O B. unknown since no information was provided about the labor market. 100- O C. $10 trillion now but thereafter it depends on what the aggregate demand curve does. O D. $10 trillion now but it depends on the SRAS curve. 80- 60- AD 40- 10 12 14 16 18 20 Real GDP ($ trillions) Price levelReal GDP is equal to the sum of current year prices multiplied by base year quantities. Select one: O True O FalseWhen the economy goes into a recession, realGDP _________ and unemployment _________.a. rises; risesb. rises; fallsc. falls; risesd. falls; falls
- 12. If _____ is rising, it likely means that the economy is shrinking. A. consumer spending B. nominal GDP C. the Consumer Price Index D. the unemployment rateExhibit 23-1 real GDP A B B real GDP f CDEFGHI Time Potential GDP According to Exhibit 23-1, which of the following is true? a. Potential GDP fell between year B and year D. Ob. In normal times, real GDP is above potential GDP. c. Unemployment rose between year D and year F. d. All recessions are of the same duration. e. Aggregate demand fell between year B and year D.Bob is let go because of slumping sales. A. seasonal B. frictional C. structural O D. cyclical E. not counted