Exam 12: Short-Run Fluctuations

Several firms in an industry laid off their workers.Assuming all else equal,this will lead to a ________.

When did the Great Depression occur?

The most severe economic contraction of the twentieth century was ________.

How many major deviations from trend GDP has the United States experienced between 1929 and 2017?

If the central bank of Techland pursues an expansionary monetary policy,________.

Agriculture is the primary occupation in Agraria,and agricultural products account for two-thirds of Agraria's GDP.How will a sharp fall in the price of agricultural products affect Agraria's economy if the demand for such products is unaffected by changes in their prices?

What effect did the declines in housing prices in the United States in the late 2000s have on the banking sector?

Which of the following is true?

An economy's ________ will fall if its real interest rate rises.

According to Okun's Law,if the annual growth rate of real GDP is 2.5 percent,the unemployment rate is likely to ________.

What event is associated with the start of the Great Depression?

How does a contractionary monetary policy affect the labor demand curve in an economy?

A firm's inventory piled up during a recession.How will its labor demand be affected when its excess inventory gets sold off eventually?

Which of the following is likely to happen if investors in an economy become optimistic following the discovery of huge mineral reserves?

The economy of Techland is currently operating at full capacity.The country then experiences a sudden boom in economic activity.However,the unemployment rate increases soon after the boom.What is likely to have caused such a phenomenon?

Since the Great Depression,how long have U.S.recessions lasted,on average?

According to Okun's Law,the year-to-year change in the rate of unemployment is ________ if the annual growth rate of real GDP is 4 percent.