EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Question
Chapter 8, Problem 4RQ
To determine
The terms used in explaining the movements of economic variables in the event of the aggregate economic activity rising or falling and the term that describes their timing.
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For the following video please answer these questions.
Business Cycle. http://www.youtube.com/watch?v=TXrOpjG4dUs
1. Refer to your text book and draw and label the Business Cycle. Be able to identify andexplain the four stages of the cycle.
2. State the characteristics of recession and expansion.3. What stage of the business cycle are we in at this time? What facts or data do youknow that support this.4. How does the business cycle influence an individual country’s economy and the actionstaken by its government?
Discuss the key problem associated with the Real Business Cycle model. How can this problem be addressed?
Consider the following statements about the business cycle.
Which of the following statements is
incorrect
?
A.
A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion.
B.
A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession.
C.
The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable.
D.
The business cycle is a periodic cycle in real GDP and employment.
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What is meant by business cycle? What are the leading and lagging indicators of forecasting a business cycle? Explain with examples.arrow_forwardCan you please these question ?arrow_forwardWhat is the central idea of the real business cycle theory? A. Fluctuations in economic activity are caused by changes in government policy B. Fluctuations in economic activity are caused by changes in technology and productivity C. Fluctuations in economic activity are caused by changes in consumer spending D. Fluctuations in economic activity are caused by changes in monetary policyarrow_forward
- Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend despite the cycles?arrow_forwardWhat are the key ideas of the real business cycle model? How does it explainbusiness cycle fluctuations? Explain in details with the help of graphs.arrow_forwardComplete the sentence: “According to Real Business Cycle Theories of the business cycle, ___________________ should be highlighted and supported by policies. Group of answer choices Aggregate demand Aggregate supply Aggregate employment Aggregate investmentarrow_forward
- what are the theories of the cycle in economic gowth and fluactuations?arrow_forwardWhat is Break? how breaks play an important role in macroeconomic data?arrow_forwardEconomic Cycle Curves Construct the AD, SRAS, and LRAS curves for an economy experiencing (a) full employment, (b) an economic boom, and (c) a recession. What will happen in each case if it's only temporary? What will happen in each case if it's permanent? Can i get an explanation on thisarrow_forward
- Explain the current phase of French economy using the business cycle diagram. What are the challenges to reach the next phase? Lockdown as a policy affects aggregate demand or aggregate supply? Is it linked to unemployment? Is it linked to inflation? How?arrow_forwardDue to temporary weather patterns, suppose production in the agricultural sector increases. a. Given the various shifters presented in the book/lecture notes, which curve(s) shifts first and why? Show the graph of the Goods and Services market, including the shift. b. What happened to the price level and RGDP in the short-run? c. Will this cause a temporary business cycle? Why or why not? Show any additional shifts in the graph above.arrow_forwardPick four of the leading economic indicators and explain why each of them is useful in predicting economic cycles. Use theory to explain why.arrow_forward
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