Questio When is a country said to move into a recession? a) If actual output falls below the potential level of output. b) If actual output falls below the trend level of output. c) If actual output falls. d) If actual output falls for two consecutive quarters of a year.
Questio When is a country said to move into a recession? a) If actual output falls below the potential level of output. b) If actual output falls below the trend level of output. c) If actual output falls. d) If actual output falls for two consecutive quarters of a year.
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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Transcribed Image Text:Question 1
Which of the following statements is false?
a) Trend GDP shows what the path of potential GDP would be if it grew steadily.
b) A trough occurs at the end of a period of contraction.
c) Trend GDP may be below potential GDP in some quarters and above in others.
d) Trend GDP may be below actual GDP in some quarters and above in others.
Question 2
When is a country said to move into a recession?
a) If actual output falls below the potential level of output.
b) If actual output falls below the trend level of output.
c) If actual output falls.
d) If actual output falls for two consecutive quarters of a year.
Question 3
Which of the following statements about classical economists in the 19th century is false?
a) They used the term trade cycles, not business cycles.
b) They knew cycles existed because of fluctuations in measured real GDP.
c) They believed the typical cycle lasted between seven and eleven years.
d) They suggested that one cause of cycles was the activity of sunspots on the sun.
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