What is likely to be true at the peak of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase.   B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing.   C. Real GDP, unemployment, and inflation are all likely to decrease.   D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.

Q: What is the difference between a recession and a depression? A. A depression is the opposite of a…

A: Business cycle refers to the fluctuations in economic activity. It includes expansion and recession.…

Q: 18. The phase of the business cycle that follows (goes after) a recession is known as the: recovery…

A: The phase of business cycle are expansion, peak, contraction or recession, trough and then again…

Q: What is the relationship between potential output and the natural rate of unemployment?  a. If the…

A: [a] Natural rate of unemployment is the sum of frictional, structural, and seasonal Thus, the…

Q: Which of the following statements is correct?   a. Inflation and unemployment are negatively…

A: Concepts:Inflation- It is the situation when the power of purchasing of a currency decreases over a…

Q: If labor supply decreases, what will happen to the real wage rate, employment, and real output,…

A: Labour supply refers to the amount of time and effort that individuals are willing and able to…

Q: In the following examples, is inflation creating winners and losers at no net cost to the economy or…

A: Inflation implies a consistent elevation in the general price level of goods and services. Commonly…

Q: According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a…

A: Inflation usually means rise in prices and and recession is such a period where less demand are seen…

Q: D. the grocery industry 2. The difference between a recession and a depression is: A. a recession is…

A: The distinction between a recession and a depression lies in the severity and duration of economic…

Q: When a recessionary gap exists, actual output______ potential output and the rate of inflation will…

A: A recessionary gap, or contractionary gap, happens when a country's genuine GDP is lower than its…

Q: J. What happens to unemployment during and after recessions? K. What is stagflation?

A: Unemployment refers to the number of population who want to work but do not get work.

Q: Which among the following would be an indicator suggesting recession a. Discretionary purchases,…

A: The purchases of government is the main tool of fiscal policy. The fiscal policy is the tool that is…

Q: a. What increase in aggregate demand is necessary to achieve this? billions. b. If successful, what…

A: Recession is when the economic growth of the country is decreasing due to which the productivity,…

Q: a. First, give the definition of the "inflation rate" and "GDP deflator Second, explain the…

A: Under macroeconomics, the entire workings of the economy as well as the impact of various aggregates…

Q: When there is an inflationary gap, current real GDP is __________ potential real GDP, and the…

A: The market value of all final goods and services produced in the economic territory of country over…

Q: 3. The business cycle is represented by a. percentage deviations in real GDP from its trend. b.…

A: When talking about business cycle, it is the process to explain a specific market nature and the…

Q: From 1950 - 2007, recessions in the United States   A. did not occur.   B. became more severe than…

A: Recession :- A recession occurs when economic activity declines for a protracted period of many…

Q: Which letter is correct in this multiple choice question? The lowest non-inflationary rate. It…

A: Natural unemployment refers to a type of unemployment that exists when there is a perfect…

Q: 1. The idea that the business cycle is recurrent means that the standard pattern of…

A: Disclaimer :- you posted multiple questions we are supposed to solve the first one only . Business…

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: The situation that depicts a general rise in the level of prices of goods and services in the…

Q: Rational expectations believe that a. the government must change government spending and taxes…

A: Human Beings make rational decisions. They weigh the pros and cons of all situations and then take a…

Q: State whether the following are true or false and briefly explain why a. Anticipated inflation has…

A: "Inflation is the rise in the price level of the economy." Over time, the price of goods and…

Q: Which of the following are true  1. Inflation squeezes profits. 2. Firms raise prices to offset…

A: Answer is given below

Q: í current unemployment rate is equal to natural rate of unemployment, then: a. inflation is high.

A: Unemployment means the people are unemployed and not working. It means the people are a part of the…

Q: On a business cycle diagram, the trough represents: a. An expansionary phase b. A contractionary…

A: Business cycle: A business cycle is a graphical presentation of the coordinated cyclical upswings…

Q: Which of the following are counter-cyclical indicators in an economy a. Inflation b. Unemployment c.…

A: Counter cycle indicators refers to the indicators that moves in the opposite direction of economic…

Q: 2. During recessions, output a and unemployment both fall b. and unemployment both rise c. rises,…

A: 2) Recession refers to a massive decrease in economic activities, which is usually caused by…

Q: In the short run, there is a positive relationship between   A. inflation and unemployment   B.…

A: In economics, the term short run usually refers to a comparatively short time span during which…

Q: A falling price level is called as   a.  disinflation.   b.  deflation.   c.  a…

A: In economics, price refers to the market value of a good or service as it is the amount of money…

Q: A mild period of falling incomes and rising unemployment is called a:       A.  business cycle…

A: The period of boom and bust is the alternating periods of economic development and decline is the…

Q: Which of the following is not one of the possible general sources of shocks that can cause business…

A: A Business Cycle is defined as a cycle of fluctuations in the Gross Domestic Product (GDP) along its…

Q: business cycle

A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…

Q: Consider the following statements about the business cycle.   Which of the following statements is…

A: Business cycles are the alternate periods of expansion and decline in an economy's commercial…

Q: When an economy is operating in a positive output gap (Inflationary Gap) which of the following must…

A: An inflationary gap is where potential GDP is less than the actual real GDP in the economy.

Q: John Maynard Keynes fundamentally disagreed with Adam Smith in that according to Keynesian Theory:…

A: The theories of the economist giants smith and Keynes have been bridged apart from their school of…

Q: Liberals think that unemployment is underestimated because of _____________________. Conservatives…

A: Unemployed are those who falls in working age bracket, are willing and able to work at the market…

Q: Economists believe that the United States is experiencing full employment when the unemployment rate…

A: An economic scenario known as full employment occurs when all of the labour resources are being…

Q: Which of the following events may lead to deflation? A. decrease in government spending during a…

A: Deflation is the decrease in average price level of goods and services in the economy.

Q: Interest rates can be expressed in real or nominal terms. Which of the following is most correct?…

A: Inflation refers to a rise in the general prices of goods and services.

Q: If the government enacts an expansionary policy during a time of full employment, ______.   A.…

A: Long run aggregate supply (LRAS) curve demonstrates the full employment level of output (or natural…

Q: 60. Over the course of an economic expansion or boom we typically see GDP growth that is the…

A: GDP(gross domestic product) is the sum total of value of final goods/services produced in an economy…

Q: What is likely to be true at the trough of the business cycle? A. Real GDP, unemployment, and…

A: Trough of te business cycle: The lowest point in an economic cycle, representing a period of…

Q: The housing market has weakened during every recession except which of the following?   a. The…

A: We have to find The housing market has weakened during every recession except which of the…

Q: The actual unemployment rate is composed of three types. Identify each type and explain whether the…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Suppose the economy is experiencing a recessionary gap. In the long run, if there is no government…

A: Unemployment is the situation where a person is currently seeking a job but faces difficulties to…

Q: d. the government's budget must be balanced.

A: Explanation: The requirements for reducing inflation while not inflicting a recession  except…