Exam 12: Short-Run Fluctuations

Consumption has fallen substantially in Techland due to pessimism among households.What will be the outcome if a contractionary monetary policy is adopted during this period?

What phrase describes best the predictability of turning points in the U.S.economy?

In the United States,recessions are informally defined as ________ in real GDP.

A country's marginal product of labor falls during winter due to excessive cold.Which of the following is likely to happen in this case,assuming all else equal?

If the economy is in an expansion this quarter,it will probably ________.

How do large increases in oil prices affect the economy?

Suppose that in 2025,the U.S.economy experiences a prolonged downturn,with unemployment rates peaking at 25 percent.What term would best describe this event?

Suppose there is a recession in 2021.When could the next recession occur?

An economy's ________ during a recession.

What are the three properties of economic fluctuations?

Which of the following will happen if aggregate consumption in an economy falls?

What is likely to happen to labor demand,asset prices,and the number of layoffs if consumption in an economy falls?

Stock prices in Richland declined suddenly after one of the largest banks in Richland faced bankruptcy.If animal spirits play an important role in shaping Richland's economy and assuming all else remains equal,which of the following is likely to happen?

Which of the following is likely to lead to a partial recovery of an economy after a recession?

What can government policies do about the business cycle?

Several people in Neonland are expecting a sharp rise in the unemployment rate in the near future.Which of the following is likely to happen in this case?

The Phillips curve describes a relationship between ________.

The nominal interest rate in Autarkia has risen sharply after a change in a government policy.How will this affect the economy if the wages in the country are downwardly rigid?

Why do purely technological theories have

The demand for household appliances increased due to an increase in consumers' incomes.This will lead to a ________,assuming all else equal.