Exam 8: Business Cycles

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

Which of the following statements is true?

A variable that tends to move at the same time as aggregate economic activity is called

In the short run,an increase in export sales would cause output to ________ and the price level to ________.

By 1937,when a new recession began in the midst of the Great Depression,

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

In the long run,a reduction in labor supply would cause output to ________ and the aggregate price level to ________.

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

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

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,which of the following curves slopes downward?

According to research by Stock and Watson,the recent decline in volatility in many macroeconomic variables was a

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?

Identify the comovement (i.e.,direction and timing)of the following variables over a business cycle: (a)industrial production; (b)unemployment; (c)nominal interest rates; (d)nominal money supply growth; and (e)investment.

Which of the following macroeconomic variables is countercyclical?

The worst recessions after World War II occurred

The key difference between classical and Keynesian macroeconomists is their differing beliefs about

The widespread decline in the volatility of many macroeconomic variables after 1984 led economists to term this period the

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

If you were a member of the NBER business-cycle dating committee,would you declare that the U.S.economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not,and what features of the data you would look for.

The job loss rate