Exam 24: Short-Term Economic Fluctuations: An Introduction

If the output gap equals 1.8 percent, then:

The unemployment rate for younger workers is usually ________ the unemployment rate for older workers.

If actual output equals potential output, unusually slow potential output growth would tend to result in:

If the cyclical rate of employment equals −2 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:

Varying the quantity of output produced and sold at preset prices is called:

A boom is:

Changes in the growth rate of potential output and deviations of actual output from potential output are two logical explanations for:

Refer to the accompanying figure. In the figure, a business cycle peak is shown by which point(s)?

Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:

In reference to short-term economic fluctuations, the "peak" refers to:

In the long run, total spending affects ________, and output is determined by ________.

Economic activity moves from a period of recession to a ________ and then moves into a period of ________ until it reaches a ________.

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then real GDP must be:

In the United States since 1929, the duration of recessions on average has been:

Since 1925, the longest recession in the United States lasted:

If the output gap equals −3.2 percent, then:

According to Okun's law, when cyclical unemployment increases from 2 to 3 percent, the recessionary gap widens from ________.

If there is 3 percent frictional unemployment, 4 percent structural unemployment, and −2 percent cyclical unemployment, then the natural rate of unemployment equals:

Industrial production, total sales, nonfarm employment, and after-tax household income are examples of ________ indicators of economic activity.