Exam 8: Business Cycles

Which of the following macroeconomic variables is procyclical and leads the business cycle?

How has the severity and duration of business cycles changed over time in the United States?

According to classical macroeconomists,prices adjust ________ to shocks,so the government should ________.

Using the seasonal business cycle as your guide,during which quarter would you be most likely to expect an increase in your corporation's sales?

Turning points in business cycles occur when

Which of the following is not a leading variable?

An increase in consumer spending caused by an increase in consumer confidence would cause

The entire sequence of a decline in aggregate economic activity followed by recovery,measured from peak to peak or trough to trough is a

The trough of a business cycle occurs when ________ hits its lowest point.

The three main components of the aggregate demand-aggregate supply model include

Who officially determines whether the economy is in a recession or expansion?

In the Great Depression,the financial sector collapsed,as

Which group within the National Bureau of Economic Research officially determines whether the economy is in a recession or expansion?

The longest contraction in American history occurred

An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called

An economic variable that moves in the opposite direction as aggregate economic activity (down in expansions,up in contractions)is called

The ADS Business Conditions Index is a

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,the aggregate demand curve

Describe the major features of the business cycle.Be sure to discuss what variables are affected by the cycle,a description of the key features that are apparent in the data,how variables are related to one another,how regular the cycle is,and how predictable the cycle is.

When aggregate economic activity is declining,the economy is said to be in