Exam 8: Business Cycles

Which of the following macroeconomic variables is the most seasonally procyclical?

Which of the following is true?

Which of the following is not a leading variable?

Define the following characteristics of business cycles: recurrence and persistence.

The job finding rate

Economists use the term shocks to mean

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

What are some of the problems with using the leading indicators to forecast recessions? If you were a policymaker,would you rely on them?

The idea that the business cycle is recurrent means that

Peaks and troughs of the business cycle are known collectively as

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

In the long run,an increase in government purchases of military equipment would cause output to ________ and the aggregate price level to ________.

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

Christina Romer argued that

The tendency for declines in economic activity to be followed by further declines,and for growth in economic activity to be followed by more growth is called

The 1973-1975 recession was caused by

You want to invest in a firm whose profits show large fluctuations throughout the business cycle.Which of the following would you invest in?

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

A variable that tends to move later than aggregate economic activity is called

The tendency of many different economic variables to have regular and predictable patterns over the business cycle is called