Identify which option is the period of recession.

Question

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Answer 1

Question

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

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Students have asked these similar questions

During a recession the economy experiencesa. rising employment and income.b. rising employment and falling income.c. rising income and falling employment.d. falling employment and income.

The aggregate quantity demand of real GDP A. increases if the price level rises. B. decreases if the price level rises. C. does not change with prices. D. All of the choices above are correct.

Which of the following is correct?a. Economic fluctuations are easily predicted by competent economists.b. Recessions have never occurred very close together.c. Spending, income, and production do not fluctuate closely with real GDP.d. None of the above is correct.

Answer 2

Question

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

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Answer 3

Question

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

Answer 6

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

Answer 7

Chapter 1, Problem 1QQ

To determine

Identify which option is the period of recession.

Answer 8

Expert Solution & Answer

Answer to Problem 1QQ

Option ‘b’ is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (b):

Recession is massive reduction in the economic activity. During the recession, there would be lower demand that in turn reduces the output, employment, and income in the economy. Thus, during the recession, the income would fall. Thus, option (b) is correct.

Option (a):

When the economy is growing (boom), there is more demand for goods and services. This in turn increases the output, employment, and income in the economy. It indicates that income increases during the boom period. Thus, option (a) is incorrect.

Option (c):

When the overall price level of the economy continues to increase for a period of time, it affects the purchasing power of the consumer. This continuous increase in the price level in the economy is the period of inflation. Thus, option (c) is incorrect.

Option (d):

When the supply of goods is greater than the demand for goods, the price of those goods will continuously fall. When the overall price level of the economy continues to fall for a period of time, this is termed as period of deflation. Thus, option (d) is incorrect.

Answer 12

Economics Concept Introduction

Recession: Recession is a significant decline in activity across the economy, lasting longer than a few months.

Answer 13

Ch. 1 - Prob. 1QQ Ch. 1 - Prob. 2QQ Ch. 1 - Prob. 3QQ Ch. 1 - Prob. 4QQ Ch. 1 - Prob. 5QQ Ch. 1 - Prob. 6QQ Ch. 1 - Prob. 1QR Ch. 1 - Prob. 2QR Ch. 1 - Prob. 3QR Ch. 1 - Prob. 1PA

Identify which option is the period of recession.

Identify which option is the period of recession.

Answer to Problem 1QQ

Explanation of Solution

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Chapter 1 Solutions