The phase of the business cycle in which real GDP declines is called: a recovery. the trough. a recession. the peak.

Q: Following a real GDP - trough; increases trough; decreases peak; increases Otrough; decreases for…

A: Answer: Trough: it refers to the lowest point of declining business activities. After the trough,…

Q: Unemployment increasing from 5% to 9% during the year

A: Which of the following economic environments would most likely be associated with a recession?…

Q: If real GDP rises while nominal GDP falls, then prices on average have: risen. decreased and then…

A: Real GDP:- Real GDP is a measurement of all the commodities generated in a country after taking…

Q: A recession is a decline in    the inflation rate that lasts six months or longer the unemployment…

A: The economic activities are the activities which need to be efficient in functioning so that they…

Q: Which of the following is the proper sequence of events in a business cycle model? Peak, GDP falls,…

A: When talking about business cycle, it is the cyclical process that is followed by the market based…

Q: The natural level of real GDP is that evel of

A: GDP is the gross domestic product of the nation, which is the total value of goods and services…

Q: During a recession: O potential GDP declines potential GDP increases real GDP declines

A: Gross Domestic Product (GDP) is the total value for final commodities manufactured in an economy.

Q: Which of the following variables falls when the national economy enters a recession? (choose all…

A: Recession: In the business cycle, recessions are a normal, albeit unpleasant, part. During a…

Q: Analyse the impact of these events on the price level and total output of an economy in the short…

A: a) When the government increases the expenditure on health and education, the demand would increase…

Q: When Full employment GDP is less than equilibrium GDP, the economy faces A) Recession B) Inflation…

A: Full employment refers to the economic situation where all the labor resources in the economy are…

Q: The decline in real GDP from $1,000 billion to $500 billion    considered a recession

A: Recession is the macroeconomic term which represents the contraction in the business cycle of the…

Q: Since 1950, expansions in the United States have become ________, while recessions have become…

A: Recession: It is a macroeconomic term that alludes to a critical decrease in all financial movement…

Q: There are two theories regarding the cause of recessions. Between the two, which one contributes…

A: Recession: It refers to the situation under which the people do not get work to do. The recession is…

Q: In what year and quarter did U.S. real GDP first exceed its pre-recession level?

A: The great recession in the U.S. was a combination of financial crisis with deep recession. The great…

Q: Aggregate demand is the total quantity of output     A)consumers actually buy.    B) producers are…

A: Aggregate demand is the sum of four components: consumption, investment, government spending, and…

Q: The measure that summarizes the aggregate price level is: O a price index. a consumption bundle. the…

A: Answer: (a)

Q: Recessions hit parts of the economy differently.   What part of the economy is usually hurt the…

A: Introduction A recession is a substantial slowdown or decline in economic activity. Generally, a…

Q: Economists use the phrase "business cycle" when referring to fluctuations in

A: Gross domestic product (GDP) is the total monetary or market value of all the finished goods and…

Q: Notice that real GDP trends upward over time but experiences ups and downs in the short run. These…

A: The business cycle refers to the various phases of up and down in the economy. The fall and rise of…

Q: Business cycles are     a short run phenomenon     a long run phenomenon     predictable…

A: Business cycles are also known as trade cycles. It has six stages namely expansion, peak, recession,…

Q: Nominal GDP increased from roughly $15 trillion in 2010 to $21 trillion in 2020. In the same period,…

A: Nominal GDP and real GDP are two important measures used to assess the economic performance of a…

Q: Which of the following statements is false? a) Trend GDP shows what the path of potential GDP would…

A: Trend GDP The predicted pace of increase of a country's productive capacity is known as trend…

Q: When actual GDP does not rise as fast as potential GDP, the economy most likely will experience…

A: The answer to the question is as follows :

Q: Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT…

A: In deflation, prices fall resulting in lower spendings.

Q: The trough of the business cycle: O is a temporary maximum level of real GDP. comes before the…

A: Business cycle refers to the fluctuations in the real GDP over the period of time. The phases of…

Q: If nominal GDP rises: real GDP must fall. real GDP must also rise. real GDP may either rise or fall.…

A: Nominal GDP is the value of the basket of all goods and services at the current year prices. So,…

Q: Stagflation

A: Stagflation is a word which is made by two words: 1. Stagnation 2. Inflation

Q: The period between a business cycle trough and the subsequent peak is called

A: The economy is the study of scarcity and limited resources. The choice is made in such a manner that…

Q: A movement along the economy's AS curve could be caused by a change in technology. the price…

A: Aggregate supply refers to the total supply of the products and services produced within an economy…

Q: Notice that real GDP trends upward over time but experiences ups and downs in the short run. These…

A: The measure of the value of all final products produced within a country's borders, adjusted for…